How to Know the Maximum Wage Garnishment for Failure to Pay a Student Loan

Wage garnishment is a lender's last resort, and should be yours as well. If you simply cannot pay off your loans, the Department of Education will begin taking a small percentage your paycheck to pay off your loan. Here's how to figure out the maximum percentage allowed for wage garnishment for failure to pay a student loan.

Things You'll Need

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Instructions

    • 1

      Figure out your disposable income. This is what's left of your income (including grants from the government or transfers from friends or family) after deducting taxes.

    • 2

      Understand the norms of garnishment. Generally, the DoE will require employers to garnish 10% of your wages, but they have the ability to garnish up to 15% of your wages.

    • 3

      Know the limits of garnishment. The agency will not deduct the full 15% if your disposable income falls under 30 times the federal minimum wage. So no matter what happens you'll have at least $154.40 (30 times $5.15) of your wages left over after garnishing.

    • 4

      Pay attention to deductions on your pay stub. The agency will garnish what is left after Medicare, taxes, social security and pension contributions are deducted.

    • 5

      Consider other garnishments. Wage garnishment for child support takes priority over student loans.

    • 6

      Understand the max percentage that can be lawfully garnished. The total maximum amount your wages can be garnished is 25% of disposable income. That includes other reasons why your wages might be garnished.

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