What DC Borrowers Need to Know About Wage Garnishment and Default
The U.S. Department of Education (ED) will resume wage garnishment for student loan borrowers in default starting this month--January 2026. If you receive a notice of wage garnishment, you have rights and options to protect your income 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.
What is Wage Garnishment? If your federal student loans are in default (270+ days past due), ED can order your employer to withhold up to 15% of your disposable income, but you must generally be left with at least $217.50 weekly. You will receive a 30-day notice before garnishment begins.
Tip: Update your contact information with ED and your loan servicer to avoid missing critical notices.
How do I know if I am delinquent or in default?
- Call your servicer for confirmation.
- Check studentaid.gov but note that some DC borrowers report incorrect delinquency/default statuses. Always confirm by phone or contact DISB for help.
Avoiding Default
Pay your past-due balance if possible.
- Request a retroactive forbearance to cancel past-due amounts and restore good standing.
- Apply an Income-Driven Repayment (IDR) plan at gov/idr or by contacting your servicer.
Steps to Get Out of Default
Loan Rehabilitation: Enter a written agreement and make nine on-time payments. Act quickly. Rehabilitation must start before garnishment begins.
- Loan Consolidation: Combine defaulted loans into a new Direct Consolidation Loan. Note: this may affect PSLF and IDR forgiveness progress.
Rights and Protections
- Request a Hearing: Within 30 days of notice, you can object if garnishment causes financial hardship or ask to reduce the amount. Contact ED’s Default Resolution Group at 1.800.621.3115.
- Check for Discharge Eligibility: You may qualify for discharge due to total and permanent disability, school misconduct or school closure.
- Legal Protections: District of Columbia law states that you have right to accurate, timely and complete information from your student loan servicers. Servicers must respond to written inquiries within 30 days and cannot furnish inaccurate credit data.
Support for DC Residents
The Student Loan Ombudsman is available to assist District residents. If you have concerns regarding your student loans, you can file a complaint here or you can reach out to the DISB Student Loan Ombudsman at 202.727.8000 or [email protected].