What to do if you're subject to wage garnishment for student loan debt

Kimberly Rotter for Freedom Debt Relief

What to do if you're subject to wage garnishment for student loan debt

In 2020, the federal government paused collections efforts on defaulted federal student loans, part of pandemic relief efforts. While Congress said payments would start again in 2023, the pause remained in effect. This pause has now ended.

The Trump Administration announced on April 21, 2025, that the Department of Education would start trying to collect on unpaid debt on May 5. Unfortunately for the approximately 5 million borrowers currently in default, the government has many powers to collect money that private debt collectors don't.

Wage garnishment is one of those powers. Your loan servicer can order your employer to withhold up to 15% of your pay after mandatory deducti