Guide

Wage garnishment is back: the 15% problem and the IDR defense

After default, the government can take up to 15% of your disposable pay without a court order. Here's the timeline, the math, and the two moves that stop it.

Policy vintage 2026-09. The 15%-of-disposable-pay cap and the 30× minimum wage weekly protection are long-standing statute (20 U.S.C. §1095a) — high confidence. Exact 2026 restart timing per loan cohort is medium confidence; verify. Not financial or legal advice; verify with official sources (studentaid.gov).

How you get there

Garnishment is a post-default remedy. The path: missed payments → 90-day delinquency reporting to credit bureaus → 270 days of non-payment → default → transfer to the Default Resolution Group (Direct) or a state guaranty agency (FFEL) → offset and garnishment notices → wage garnishment after the notice and 30-day objection windows.

FFEL borrowers should assume less slack: guaranty agencies have continued administrative garnishment authority independent of the Direct-loan pause cycles, and the 2026 enforcement restart hit them first.

The math (know exactly what can be taken)

The garnishment order takes the LESSER of: (a) 15% of your disposable pay — gross pay minus legally required deductions like taxes and mandatory Social Security — or (b) the amount by which your weekly disposable pay exceeds 30× the federal minimum wage ($7.25 → $217.50/week ≈ $942.50/month).

Worked example: if your disposable pay is $3,000/month, 15% is $450. The minimum-wage cap allows $3,000 − $942.50 ≈ $2,057. The lesser is $450/month — gone, every month, before you see it, plus fees. For most incomes the 15% share binds. Our engine computes your exact number and sets it against your IDR payment.

The two moves that stop garnishment

Order matters:

Apply for an income-driven repayment plan. If your IDR payment computes to less than the garnishment (it almost always does), being in repayment removes the reason for garnishment. Application + alternative income documentation can suspend the process while pending.
Request rehabilitation on the defaulted loan. Nine on-time payments in ten consecutive months cures the default and removes it from your credit history; garnishment is typically suspended while rehabilitation payments are current.

What does NOT stop it

Ignoring the notices, waiting for a court (there isn't one — administrative garnishment needs no judge), disputing the debt to the garnishing agency without putting your dispute in writing, and 'credit repair' companies. A tax-refund offset is separate machinery: after default and a 65-day notice, your refund can be taken in full — file early in the season if you expect one, and file the offset hardship objection if the refund is needed for living expenses.

Run your own numbers

Every figure in this guide is a formula you can apply to your own loans in about five minutes — the free profile gives you your dated default timeline and payment ranges.