Jose thought his student loans were behind him. After all, they had fallen off his credit report, and he assumed they were forgiven. But when he received a letter saying his wages were about to be garnished, reality hit hard. He reached out to My Education Solutions, worried and unsure what to do next. How could he stop student loan wage garnishment before it started?
Jose’s situation isn’t unique. More than 5.5 million Americans are now receiving similar letters, warning them of impending wage garnishment due to defaulted student loans. The restart of payments in October 2024 caught many borrowers off guard — especially those who hadn’t made payments in years or assumed their loans were wiped clean during the long pause.
If you’re in the same boat, there’s good news: You can stop student loan wage garnishment before it starts — but you need to act fast. My Education Solutions has warned clients about student loan wage garnishment in the past, but there’s a lot of new information to consider.
What Is Wage Garnishment?
Wage garnishment means a portion of your paycheck is automatically withheld by your employer. It is then sent to the government to repay your student loan debt. This typically happens after a loan has gone into default — usually when no payment has been made for 270 days.
Before garnishment begins, borrowers receive a Notice of Intent to Garnish Wages, giving them 30 days to take action. After that, the government can contact your employer within 60 days to begin taking up to 15% of your disposable income.
For many, especially gig workers or those with inconsistent or fixed income, garnishment can be financially devastating.
What Are Your Options Before Garnishment Begins?
If you’ve received a warning letter or been notified that you’re in default, don’t wait. You have more options before garnishment begins than after.
When Jose called My Education Solutions, our team immediately helped him understand his status and the next steps. Because he hadn’t yet been garnished, he was eligible to enroll in a repayment plan and apply for loan forgiveness options — options that disappear once garnishment starts.
“If people spoke to our Student Loan Advisors we can help cut through the confusion and give great advice and a customized repayment and forgiveness program which will avoid garnishment. The worst thing is if you take no action, the consultation is free to find out your options so there is no reason to delay.” states Christina Randell, President of My Education Solutions.
What Happens If You’re Already Being Garnished?
Once garnishment begins, stopping it becomes much harder. You typically must go through a loan rehabilitation program. This step requires making nine on-time monthly payments — often over the course of ten months — before the garnishment stops. During this time, your wages will continue to be withheld.
This is why acting before your wages are garnished is critical.
Don’t Wait for the Government to Call Your Boss
Jose told us, “I didn’t even know this was coming.” That’s something we hear every day. The truth is, garnishment doesn’t come out of nowhere — but it can feel that way if you’ve lost track of your loan status, or if your loan servicer changed names, as many have in recent years.
If you’ve received a notice or suspect your loans may be in default, we’re here to help. At My Education Solutions, we specialize in resolving student loan defaults and helping borrowers protect their paychecks. Learn how we can help you today.
