En esta noticia
The U.S. Department of Education has the authority to order the garnishment of up to 15% of the wages of debtors with federal student loans in default, without the need for a prior court ruling.
This authority has been in force for years in federal regulations and allows the employer to be notified directly to withhold part of the pay. Currently, however, its enforcement is paused by an official government decision.
How does wage garnishment for student loans work?
When a federal student loan goes into default, the lender can order the employer to withhold up to 15% of the available wages of the debtor. This withholding continues until the debt is paid off or the delinquent status is resolved.
The law requires 30 days of prior notice before applying the deduction and guarantees a protected minimum income of US$217.50 per week. The debtor also has the right to request a hearing to challenge the measure.
Before any withholding is applied, the affected person can exercise the following rights:
- Receive formal notice 30 days in advance
- Request a hearing to present objections
- Request copies of all documents related to the debt
- Negotiate a voluntary repayment plan before the deduction begins
Is garnishment still in effect at this time?
The Department of Education paused the enforcement of these garnishments on January 16, 2026, while it moves forward with reforms to the student loan system. Since then, no debtor has been subject to active withholding through this route.
The agency did not announce a reactivation date, but the regulation that authorizes the 15% deduction remains intact. If there are no legal changes, the mechanism will again apply under exactly the same conditions that were in force before the pause.