Chapter 7 and Chapter 13 Paths

After getting a federal wage garnishment notification, you can ask for a hardship hearing through the Department of Education's collection system. The demand needs to reveal that the garnishment prevents you from covering basic living expenditures. If approved, garnishment may be reduced or temporarily stopped briefly, however the loan remains in default.

Starting the week of January 7, 2026, the U.S. Department of Education (ED) prepares to begin garnishing salaries from trainee loan debtors in default. This will be the very first time that borrowers in default go through losing their pay over student loans considering that the COVID-19 pandemicapproximately 5 years., "At a time when families across the nation are struggling with stagnant wages and a cost crisis, this Administration's choice to garnish incomes from defaulted trainee loan debtors is vicious, unnecessary, and careless.

If debtors do not understand if their loan is in default and will be subject to garnishment, they can go to the Federal Trainee Help website. Customers who are not yet in default can look into Income-Driven Repayment options to avoid default.

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Borrowers who get a notice from ED in January can ask for a hearing to object on the premises that the garnishment would result in financial hardship and ask to decrease the quantity garnished. Debtors ought to also check if they are eligible for discharge. Lastly, if debtors are having trouble finding details, they can reach out to their Members of Congress and request casework help.

(formerly Student Borrower Protection Center) is a nonprofit company led by a group of professionals, attorneys, and advocates combating to build an economy where financial obligation doesn't restrict opportunity. We investigate monetary abuses, take predatory business to court, and push for policies to secure working individuals from debt traps. We aim to deliver instant relief to households while building power, driving systemic modification, and fighting for racial and financial justice.

Automatic Stay Prevents Wage Garnishment

The U.S. Department of Education (ED) will resume wage garnishment for student loan borrowers in default starting this month-- January 2026. If you get a notification of wage garnishment, you have rights and alternatives to safeguard your earnings and get back on track. You can learn more on ED's website and by viewing a virtual webinar from the DC Student Loan Ombudsman here.

You will receive a 30-day notification before garnishment begins. Update your contact details with ED and your loan servicer to prevent missing important notices. Keep in mind that some DC debtors report inaccurate delinquency/default statuses.

Rehab must start before garnishment begins. Integrate defaulted loans into a new Direct Combination Loan. Within 30 days of notification, you can object if garnishment triggers monetary difficulty or ask to decrease the amount.

You may certify for discharge due to overall and permanent impairment, school misbehavior or school closure. District of Columbia law states that you have best to precise, timely and total details from your student loan servicers. Servicers must react to written inquiries within one month and can not furnish inaccurate credit data.

Chapter 7 and Chapter 13

If you have concerns concerning your student loans, you can file a grievance here or you can connect to the DISB Student Loan Ombudsman at 202.727.8000 or [e-mail safeguarded].

You may be able to challenge the trainee loan wage garnishment. The earlier you deal with a trainee loan wage garnishment, the more likely you will be effective in lowering or stopping the garnishment.

Garnishment can't occur unless you are in default on your student loans. Garnishment can't take place unless you are in default on your trainee loans.