Having your wages garnished due to defaulted student loans is a stressful and financially devastating experience. If you're facing wage garnishment, you're not alone—and more importantly, you have options to stop it and get your loans back on track.
This comprehensive guide will walk you through everything you need to know about student loan wage garnishment and the specific steps you can take to stop it immediately.
Time is critical when dealing with wage garnishment. The sooner you take action, the sooner you can stop the garnishment and prevent further financial hardship. Don't wait—explore your options today.
Wage garnishment is a legal process where your employer is ordered to withhold a portion of your paycheck to repay your defaulted federal student loans. The U.S. Department of Education can garnish up to 15% of your disposable income without a court order.
Can garnish 15% of disposable income without court order after 270 days of default
Must sue you and obtain court judgment before garnishing wages
Rehabilitation is a one-time opportunity to remove the default status from your loan. You must make 9 reasonable and affordable monthly payments within 10 months (can miss one month).
✓ Best For: Long-term solution that restores
loan to good standing
✓ Benefits: Default removed from credit
report, garnishment stops, regain eligibility for
deferment/forbearance
✓ Timeline: Garnishment stops after 5th
payment
Consolidating your defaulted loans into a new Direct Consolidation Loan can stop garnishment immediately.
✓ Best For: Quick relief from garnishment
✓ Benefits: Garnishment stops immediately,
can choose income-driven repayment plan
✓ Downside: Default remains on credit report,
lose certain borrower benefits
You have the right to request a hearing to dispute the garnishment. This temporarily stops the garnishment while your case is reviewed.
✓ Best For: Situations involving hardship,
mistaken identity, or already repaid loans
✓ Timeline: Must request within 30 days of
garnishment notice
✓ Note: Garnishment paused during review
process
If the garnishment causes you extreme financial hardship, you may be able to reduce or eliminate it temporarily.
✓ Best For: Borrowers facing eviction,
utility shut-off, or inability to afford necessities
✓ Required: Documentation of income,
expenses, and hardship
✓ Note: This is a temporary measure, not a
permanent solution
If financially possible, paying the debt in full or negotiating a settlement will immediately stop garnishment.
✓ Best For: Those with lump sum available or
ability to make large payments
✓ Options: Pay in full, compromise
settlement, or arrange payment plan
✓ Result: Immediate cessation of garnishment
Ignoring wage garnishment will only make your situation worse:
Our team specializes in preparing the documentation needed to stop wage garnishment and get your student loans back on track. We can help you navigate rehabilitation, consolidation, hardship claims, and more.
Get Help Now