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

Hello, I’m Cherry Ashwood. I’m a guidance counselor and today I’m going to tell you what the maximum wage garnishment for failure to repay a student loan is. Wage garnishment happens when you have failed to make payment towards the loan or fail to communicate with the lender to work out a payment plan.

When wage garnishment starts, that is where the government has required your employer to forward 15% of your take home income towards repayment. So at this point, the loan lender or the government has decided that they can’t rely on you to make payments on good faith so they’re going to take the money out of your paycheck. It is the worst thing that you can have happen. Before wage garnishment ensues, the government is required or any lender is required to make several attempts to contact you to work out some sort of agreements to get the loans repaid.

Wage garnishment hurts your credit history and it hurts your pockets. And just for the sake of math, 15% of a thousand dollars of disposable income is a $150. It’s a lot of money when more than likely your actual loan payment wasn’t going to be that much. I’m Cherry Ashwood. I’m a guidance counselor. And your future starts today.