Wage Garnishment? Here’s What to Do



Fact: The U.S. Department of Education can garnish up to 15% of  your wages, as a way to recover the money you owed on a defaulted student loan.

Nobody wants to be in the position of having their wages garnished, but if you are, there is still plenty you can do to get your student loans (and credit) back in good shape.


Steer Clear of Debt Relief Agencies

For starters, avoid any debt relief agency that claims they can help you.

Debt relief representatives are nothing more than trained salespeople, and are not student loan industry or financial industry experts. They’re probably not going to know how to steer you in the right direction, since their only real intention is to steer you into paying them.

Note: A common tactic debt relief reps may use to convince you to sign up for their services is to claim to be affiliated with the U.S. Department of Education. They aren’t!

With that in mind, read on to learn the safest and best path to follow if your wages are being garnished.


If your wages are being garnished

  • Contact the U.S. Dept of Education’s Default Resolution Group at 1-800-621-3115. They are always the best starting point for student loan borrowers, and you will find them to be both knowledgeable and helpful.
  • They may refer you to the present owner of your loan, but by starting with the Default Resolution Group, you can be confident that you are following the safest and best path.
  • Once you get in contact with the loan holder or federal student loan collections agency, you may be able to negotiate a payment arrangement to rehabilitate your loans.


The most common payment arrangement offered is the 9-month Loan Rehabilitation option.

Through it, you can negotiate a monthly payment that will rehabilitate your federal student loans after 9 consecutive months of repayment. Please note, if you miss a payment, must begin the repayment schedule from the beginning.

Working on your loan rehabilitation process will also clean up any derogatory credit reporting that resulted from the defaulted federal student loans – a big plus!

For a little follow-up reading on this topic, read Wikipedia’s article on it. It includes the unique circumstances where the wage garnishment may be objected to and the steps to rebut it.

And for some one-to-one guidance on how to best deal with your student loan debt in a smart, money-saving and efficient way, schedule a consultation with me by clicking here.

I’ve been working in the student loan industry, and financial services industry, for nearly 20 years now, and am now putting my insider expertise to your benefit.

Looking forward to being of help and pointing you towards your best options —

Best wishes,




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