How Student Loan Wage Garnishment Works
When a federal student loan goes into default (usually after about 9 months of missed payments), the government can collect without suing you. The main tool is administrative wage garnishment (AWG): your employer is ordered to send part of every paycheck until the loan is paid off or out of default.
The amount is the smaller of two numbers:
- 15% of your disposable pay. Disposable pay is what's left after taxes and health insurance premiums.
- Everything above 30 times the federal minimum wage. At $7.25 an hour, that protects $217.50 a week ($435 every two weeks, $471.25 twice a month, $942.50 a month).
For most full-time workers, the 15% limit is the one that applies. The minimum-wage protection matters for lower or part-time paychecks.
Where Things Stand in November 2026
The Education Department paused involuntary collections in January 2026 while it rolled out repayment changes. In October 2026, reports said wage garnishment and private debt collection could resume as soon as November. Nearly 10 million Americans are in default, according to the Roosevelt Institute. Garnishment can't start without a written notice at least 30 days ahead, and notices go to your last known address, so make sure your servicer has your current one.
How to Stop It
- Loan rehabilitation. Make at least nine "reasonable and affordable" monthly payments. It removes the default from your credit report. If you're already being garnished, you may have to pay on top of the garnishment for part of the program.
- Consolidation. Faster than rehabilitation, but it may not be available once garnishment has started, and it can affect existing forgiveness credit.
- Hardship objection. You can ask for a lower amount, but it's usually approved only in serious hardship.
- Contest the debt. If the loan isn't yours, was discharged, or the amount is wrong, request a hearing within the notice window.
Contact your loan holder or the Education Department's default resolution group as soon as you get a notice. Acting inside the 30 days keeps the most options open.
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