Yes, federal student loans can be garnished without a lawsuit.
Unlike most types of debt, federal student loans do not require a court judgment before wage garnishment can occur. This process is called administrative wage garnishment (AWG) and allows the U.S. Department of Education or its collection agencies to garnish your wages without suing you.
How Does Administrative Wage Garnishment (AWG) Work?
✔️ No lawsuit required – The government does not need to take you to court.
✔️ Can garnish up to 15% of disposable income – But they cannot leave you with less than 30 times the federal minimum wage per week.
✔️ Applies only to federal student loans – Private student loans require a lawsuit and court order before wage garnishment.
✔️ You must be notified first – You will receive a wage garnishment notice at least 30 days before the garnishment starts.
🚨 If you ignore the notice, the garnishment will proceed automatically.
How Can I Stop Federal Student Loan Wage Garnishment?
✅ Request a Hearing – You have the right to request a hearing within 30 days of receiving the garnishment notice.
✅ Enter into a Payment Plan – Setting up a loan rehabilitation or consolidation plan can stop garnishment.
✅ Prove Financial Hardship – If the garnishment causes extreme financial difficulty, you may be able to reduce or stop it.
✅ Dispute the Debt – If you believe the debt is inaccurate, you can challenge it before the garnishment begins.
Can Private Student Loan Lenders Garnish Wages Without a Lawsuit?
❌ No, private lenders must sue you first.
Unlike federal student loans, private lenders cannot garnish your wages without first suing you and winning a court judgment.
Need Help Stopping a Wage Garnishment?
If your wages are being garnished for student loans, or you need help challenging an unlawful garnishment, The Wood Firm PLLC can assist you.
📞 Call us at 844-638-1122
📧 Email us at help@protectionforconsumers.com
Don’t let your wages be taken unfairly—know your rights and take action today!
