In January 2026 the Education Department said it was temporarily delaying collections on defaulted federal student loans, and as of mid-October 2026 no restart date has been announced. When garnishment does resume, you must get written notice at least 30 days before it starts, and it's generally limited to 15% of disposable pay. The way to protect your paycheck is to get out of default now through rehabilitation or consolidation.
Where wage garnishment stands right now
- January 2026: garnishment notices went out to a first group of defaulted borrowers.
- Mid-January 2026: the Education Department announced it was temporarily delaying collections on defaulted loans.
- As of mid-October 2026: no restart date has been announced. Collection of defaulted loans is moving toward the Treasury Department, and a new online Defaulted Loans Support Center launched on StudentAid.gov.
Your loan is still in default, interest can keep building, and collections can restart after written notice. Tax refund and federal benefit offsets follow separate rules, so check your own status rather than assuming you're protected.
What happens before your wages are garnished
Federal student loan garnishment (called administrative wage garnishment) doesn't need a court order, but it can't start without warning:
- You must receive a written notice at least 30 days before garnishment begins.
- You can request a hearing, for example if you're not in default, the amount is wrong, or garnishment would cause financial hardship. Requesting one within the notice window generally pauses garnishment until it's decided.
- You can set up a repayment agreement before the deadline to avoid garnishment starting.
How much can be garnished?
Generally up to 15% of your disposable pay (pay after legally required deductions like taxes). Federal law also protects a minimum amount of weekly income: if your weekly disposable pay is $217.50 or less, nothing can be garnished, and above that only the smaller of 15% or the amount over $217.50 can be taken.
| Weekly disposable pay | 15% of pay | Max garnishment |
|---|---|---|
| $200 | $30 | $0 |
| $250 | $37.50 | $32.50 |
| $600 | $90 | $90 |
| $1,000 | $150 | $150 |
How to stop garnishment: your options
| Option | How it works | Good to know |
|---|---|---|
| Rehabilitation | 9 on-time, income-based payments within 10 months | Removes the default record from your credit report. Can only be done once per loan. |
| Consolidation | New Direct Consolidation Loan, repaid on an income-driven plan | Faster exit, but the default record stays on your credit report. Generally not available while a garnishment order is in place. |
| Repayment agreement | Agreed payments starting before the notice deadline | Can stop a garnishment from starting, but you're still in default. |
| Pay in full | Pay the whole balance plus costs | Rarely realistic, but ends it immediately. |
Rehabilitation payments are based on your income and can be very low. Read our full comparison in the default guide.
What to do this week if you're in default
- Confirm your statusLog in to StudentAid.gov and check which loans are in default and who holds them.
- Make sure they can reach youUpdate your mailing address and email. A notice you never receive still starts the clock.
- Start rehabilitation or consolidation nowBoth take weeks to months. Use the Defaulted Loans Support Center on StudentAid.gov to compare and apply online.
- Plan your next repayment planOnce you're out of default you can choose IBR or RAP. Check what you'd pay with our RAP calculator.
- Keep recordsSave every confirmation, payment receipt and call reference number.
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Get my personalized report →Frequently asked questions
Is student loan wage garnishment paused in 2026?
The Education Department announced in January 2026 that it was temporarily delaying collections on defaulted federal student loans. As of mid-October 2026, no restart date has been announced.
How much of my paycheck can be garnished for student loans?
Generally up to 15% of disposable pay, and nothing if your weekly disposable pay is $217.50 or less.
Will I be warned before my wages are garnished?
Yes. You must receive a written notice at least 30 days before garnishment starts, and you can request a hearing or set up a repayment agreement.
How do I stop student loan wage garnishment?
Get out of default through rehabilitation or consolidation, set up a repayment agreement before the notice deadline, or request a hearing if you have grounds.
Does rehabilitation remove the default from my credit report?
Yes. Completing rehabilitation removes the record of default, though late payments reported before the default can remain.
Sources
- Forbes: Education Department debuts new resolution portal
- StudentAid.gov: Getting out of default
- DC DISB: What borrowers should know about wage garnishment
- Newsweek: Two major changes for federal borrowers
Rules can change. Always confirm your details on StudentAid.gov or with your loan servicer before acting.