Default and collections / Garnishment calculator
Last verified Oct 17, 2026
Wage garnishment and offset: how much can be taken
For defaulted federal student loans, the government can garnish up to 15% of disposable pay without going to court, and take tax refunds and part of some federal benefits.
Where this stands: on Jan. 16, 2026 the Department of Education announced it would delay administrative wage garnishment and Treasury offset while it put the new repayment rules in place. As of Oct 17, 2026 we have not found an official date for them to restart. Default is still reported to credit bureaus. Department announcement
Before garnishment starts you get a written notice at least 30 days ahead. A hearing request postmarked within 30 days of the notice pauses garnishment until the hearing. Starting a repayment agreement within 30 days also avoids it.
Treasury offset can take a federal tax refund. A notice is mailed first; offset is scheduled to begin 65 days later, and a first payment under a repayment agreement within that time avoids it.
The rules behind the numbers
- Garnishment: no more than 15% of disposable pay per pay period, unless you agree in writing to more (20 U.S.C. 1095a). The employer withholds the smaller of the order and the amount by which your disposable pay exceeds 30 times the federal minimum wage of $7.25 for that period: $217.50 a week, $435 for two weeks, and for a month 4⅓ weeks, $942.50 (34 CFR 34.19; 15 U.S.C. 1673; 29 CFR 870.10).
- Social Security and certain other federal benefits: the offset is the smallest of the debt, 15% of the monthly benefit, and the part of the benefit above $750. A benefit of $750 or less isn’t offset (31 CFR 285.4).
- When it can start: a loan is in default after 270 days without payment; StudentAid.gov says involuntary collection can begin after more than 360 days.