How to Stop a Department of Education Wage Garnishment

If you've taken out student loans from the Department of Education and have missed payments, your loans can go into default. The Department of Education or a private collection agency hired by the department will attempt to contact you to resolve your debt. If the department determines that you're not willing to repay your loans, it may file to have your wages garnished. Before garnishment goes into effect, the department notifies you in writing 30 days prior.

Instructions

1

Develop a payment plan. You can contact the Department of Education or its representative agency to develop a repayment plan that works with your current budget. You need to provide the department with details of your personal finances, including your income and expenses. You need to have agreed on a plan and made your first payment prior to the garnishment start date to stop wage garnishment.

2

Repay the loan. If you have home equity or can take out a new loan through your bank or other lender, you may be able to save on fees and interest, as well as stop the garnishment by repaying the loan in full.

3

Refinance the loan. Banks or lenders sometimes buy distressed loans. You can also try to apply for a new loan and consolidate your old loan into it. If your loan is in default, you may need to be on a payment plan for several months before your loan is eligible for refinancing.

4

Ask for a hearing. If you believe that the amount you owe is incorrect or that you don't owe the money, you can request a hearing. You can also request a hearing if the wage garnishment will cause you undue financial hardship. Follow the instructions on the Notice of Intent to Garnish to request the hearing. This must be done prior to the deadline listed in the notice if you want to prevent the wage garnishment.