Student Loan Garnishment: What Income Can Be Taken?

The end of the student loan payment pause also signals the return of collections efforts for those in default. One of the most impactful collection methods is wage garnishment, where the government takes a portion of your paycheck to repay the debt.

**What income can be garnished for defaulted student loans?**

Generally, federal student loan servicers can garnish up to 15% of your disposable income. Disposable income is what remains after legally required deductions, such as taxes and Social Security.

Here are some common types of income that *can* be garnished:

* **Wages:** Your regular paycheck is the most common target for garnishment.
* **Federal tax refunds:** The government can seize your federal tax refund to offset defaulted student loans.
* **Social Security benefits:** While some protections exist, Social Security benefits can be garnished in certain situations. However, the first $750 a month is typically protected from garnishment.

It's important to remember that you have rights. You should receive a notice before garnishment begins, giving you the opportunity to challenge the garnishment or explore options like loan rehabilitation or consolidation.

**What to do if you're facing garnishment:**

1. **Contact your loan servicer:** Discuss your options for getting out of default, such as loan rehabilitation or consolidation.
2. **Request a hearing:** You have the right to request a hearing to challenge the garnishment if you believe it's improper or will cause undue hardship.
3. **Explore income-driven repayment plans:** These plans can lower your monthly payments and potentially prevent future defaults.

Navigating student loan debt can be complex. Understanding your rights and exploring available options is essential to managing your debt effectively and avoiding the consequences of default.