11/17/2014 04:14 pm ET Updated Dec 06, 2017

How Do I Stop My Student Loan Wage Garnishment?

Huffington Post Reader Question

Dear Steve,

My check is getting garnished until dec 17th after that they said i can make a payment arrangement and they will send out another garnishment can i tell them what i can pay a month or do they tell me what to pay?


Don't miss my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Subscribe now. - Click Here

Dear Viola,

There are two ways a paycheck could get garnished. The first is an Administrative Wage Garnishment (AWG) from a federal student loan. They don't need to sue you to garnish your wages. Most people have their checks garnished as the result of an AWG.

The other way would be if your private student loan lender sued you, won, and then went for a garnishment. If your garnishment is the result of private student loans then read, Should We File Bankruptcy on Our Student Loan Judgment?

So, if that's the case in your situation there are two things you can do to stop the garnishment.

The first would be to follow the notice of appeal in the notice of garnishment you would have received. You can appeal the size of the garnishment if it creates a burden on your financial responsibilities.

If it is too late to appeal the AWG then the most logical solution would be to look at the rehabilitation approach. Under that federal loan program you would enter into an agreement to make a reasonable and affordable monthly payment on top of the garnishment for five months. This payment can be as little as $5 per month.

For more on this program, read this article and look for the section on Administrative Wage Garnishment and Student Loan Rehabilitation.

At the end of five months the garnishment would stop and in four additional months you loan(s) would be rehabilitated and eligible to be consolidated in an Income Based Repayment program. This should hopefully reduce your payment and keep it as low as it can go. Depending on your income, that can be as little as $0 per month.

Before I go I wanted to leave you with three easy action items you jump on right now to address your situation. Just click here.

Get Out of Debt Guy - Twitter, G+, Facebook

If you have a credit or debt question you'd like to ask, just click here and ask away.

If you'd like to stay posted on all the latest get out of debt news and scam alerts, subscribe to my free newsletter.