Overview

• The Education Department continues to cite a "later this summer" timeline for wage garnishment but has not announced a date as Labor Day approaches.
• Servicers say restarting garnishments requires additional setup, with one trade group expecting at least a month or more before deductions begin.
• In May, about 195,000 borrowers received Treasury offset notices, and officials said all 5.3 million borrowers in default would later get wage-garnishment warnings.
• Garnishment can take up to 15% of disposable pay, with federal rules requiring a protected minimum based on 30 times the hourly minimum wage.
• Borrowers are entitled to a 30-day notice and may request a hearing or pursue rehabilitation, consolidation, or income-driven plans through the Default Resolution Group to avoid garnishment; employers cannot fire workers because their wages are garnished.