Can Sallie Mae Garnish Your Wages? What Actually Happens

Sallie Mae cannot garnish your wages automatically. Like all private student loan lenders, it must sue you in court and win a judgment before any part of your paycheck can be taken.

That court judgment is the gatekeeper. Missing payments or going into default does not give Sallie Mae the power to garnish wages on its own. Until a judge enters a judgment, wage garnishment is not legally available.

This is different from federal student loans, which can use administrative wage garnishment — a process that lets the government take money directly from your paycheck without going to court.

When you stop making payments on a Sallie Mae loan, collections start first—and your paycheck is not affected at this stage.

Missed payments first lead to delinquency and then default under the loan’s terms. During this stage, Sallie Mae or a collection agency may call you, send letters, and demand payment. These actions can escalate, but they do not affect your paycheck.

If nonpayment continues, Sallie Mae may decide to pursue legal action. That step is not automatic. A lawsuit is typically a later escalation after collection efforts fail, not the starting point.

Until Sallie Mae files a lawsuit and obtains a court judgment, wage garnishment is not possible. Default alone does not create garnishment authority.

Sallie Mae can garnish your wages only after a court judgment is entered. There is no administrative shortcut.

To reach that point, Sallie Mae must file a lawsuit in state court and properly serve you with notice. You are then given time to respond. If the case is contested, the court decides whether Sallie Mae is entitled to judgment. If no response is filed, the court may enter a default judgment.

Wage garnishment becomes possible only after that judgment exists. At that stage, Sallie Mae can ask the court to enforce the judgment through wage garnishment. Your employer may then be ordered to withhold part of your pay.

Until a judgment is entered, Sallie Mae’s collection tools are limited to calls, letters, and payment demands. Missing payments, default, or charge-off status does not authorize wage garnishment by itself.

Related: What Happens If You Default on Sallie Mae Loans?

Yes. Sallie Mae does file lawsuits in some cases, and that lawsuit is the only path to wage garnishment.

Lawsuits usually come after prolonged nonpayment, when collection efforts fail and the balance justifies legal action. Factors like the loan amount, the age of the debt, available documentation, and borrower responsiveness all influence that decision. Many defaulted loans never reach court, but some do.

Once a lawsuit is filed, the situation becomes a legal proceeding. A defended case may end in litigation or settlement. An ignored case can result in a default judgment, which opens the door to wage garnishment.

Related: What to Do When You’re Sued for a Private Student Loan

Whether Sallie Mae wage garnishment can be stopped—or avoided entirely—depends on where the loan is in the court process. Each option works at a different stage. None bypass the court system.

1. Respond to the lawsuit before judgment. Wage garnishment is not available unless a court enters judgment. Filing a timely response prevents a default judgment and keeps enforcement tools off the table while the case proceeds.

2. Resolve the case through settlement. Settlement can occur before or after a lawsuit is filed. If an agreement is reached, the case may be dismissed or the judgment released. That removes the legal basis for wage garnishment.

3. Challenge the judgment if there is a legal defect. If service was improper or court rules were not followed, state law may allow the judgment to be vacated. Without a valid judgment, garnishment cannot continue.

4. Bankruptcy. Filing bankruptcy triggers an automatic stay that stops wage garnishment immediately while the case is active. What happens to the loan afterward depends on the bankruptcy type and case facts.