Check your paycheck: The US government will soon garnish wages to service federal student loans. Here's how to fight it

That’s scary news, especially considering the state of inflation, employment and gas prices these days. The good news is, if you think the government is going to come after you for student loan payments, you have options.

Are you at risk of garnishment?

Not every student loan borrower is at risk. This only applies to people with federal student loans in default. Private student loans fall under different rules. Those lenders must go through the courts to garnish wages.

Default happens after you miss payments for a long period, typically 270 days (nine months). At that point, the entire loan balance becomes due, and the Department of Education can collect directly from your paycheck. According to The Washington Sun, nearly 10 million Americans are in default on their federal student loans.

The default crisis

The federal student loan program has been a political hot topic for years. The government introduced a temporary pause on repayments for borrowers during the pandemic and the Biden administration’s efforts to forgive loans delayed collections further.

However, the Trump administration is eager to resume repayments.

A study last year by the Pew Charitable Trusts warned of “a coming wave of further student loan defaults — which put borrower financial stability and taxpayer investments at risk.”

Those who default could see their credit score drop by 60 points on average, according to TransUnion.

Those facing delinquency will receive a 30-day notice before Federal Student Aid (FSA) withholds a portion of their paycheck.

But if you receive this notice, don’t despair. There are steps you can take.

How to prevent wage garnishment

If you tend to forget or miss payments, you can consider setting up autopay. According to reporting in Forbes, the Department of Education is offering a temporary 1% interest rate reduction for those who enroll in auto-pay in 2026.

Making your case

Many people who are in debt develop a fear of opening mail, but if you think this latest crackdown applies to you, you’d be better off keeping an eye on the mailbox.

According to Forbes, if you are going to have your wages clawed back, you’ll get a letter called a “Notice Prior to Wage Withholding.” That’s your 30-day warning. Make sure you keep your information up to date at StudentAid.gov so you don’t miss anything.

If you have a valid reason why you haven’t been paying, or can’t pay, you may be able to get an exception. If you can show that you actually aren’t in default and have been making payments, that you’re in bankruptcy, or that you’re permanently disabled, you could get a break on the enforcement of payments.

Another type of objection is school based. If your college closed before it could grant you your degree or diploma, you might have a case. You can find the various forms for all these various options in the federal student aid forms library.

The hardship option

If you’re in truly dire straits, you can ask for a hearing to show that garnishment of your wages would put you into “extreme” financial hardship. According to Forbes, this doesn’t have a specific definition, but it does have to be extreme — for instance, if you show that the garnishment could put you at risk of homelessness.

You will need to include as much supporting information and documentation as possible about your income and expenses. Hearings are usually over the phone, although some cities offer them in person. Decisions take about 60 days, and if you qualify, you may get a reduction in your garnishment or a pause on it for one year.

Get your loan back on track

Paying off the loan or just letting the garnishment go ahead are not the only ways to get a student loan back on track.

Several federal student loan relief programs exist to help borrowers maintain, or get back into, good standing.

These include income-driven repayment plans, deferment, forbearance, and specific forgiveness programs for public servants, teachers and medical professionals.