How to Stop Student Loan Wage Garnishment With a Notice of Intent

Updated on November 13, 2025

If you just received a Notice of Intent to Garnish from the Department of Education, you still have time to stop it, but the clock is ticking. You have 30 days from the date on that notice to act before your employer is contacted to withhold money from your paycheck.

During that window, you can fix your default and cancel the garnishment order entirely by either consolidating or rehabilitating your federal loans. Once the 30 days pass, those options narrow—and the government can start taking up to 15% of your disposable income automatically.

What the Notice of Intent to Garnish Means

A Notice of Intent to Garnish is your final warning before the Department of Education starts collecting from your paycheck through Administrative Wage Garnishment (AWG). It means your federal loans are in default, and the government is preparing to issue an order to your employer.

The notice gives you 30 days to respond before the order becomes active. During this period, you have three options:

Consolidate your loans into a new Direct Consolidation Loan, which immediately removes the default.
Enter a loan rehabilitation agreement, setting up monthly payments before the first deduction occurs.
Request a hardship hearing, if the proposed garnishment would cause financial hardship.

If you do nothing within those 30 days, the order will move forward and your employer will be required to start withholding from your paycheck.

Option 1: Direct Loan Consolidation

Submitting a Direct Loan Consolidation application is the quickest and most effective way to stop a pending wage garnishment before it starts. When you consolidate a defaulted loan, it is paid off and replaced with a new loan in good standing, which cancels the underlying garnishment order before it is sent to your employer.

Here’s what to do before the 30-day window closes:

Apply Online: Go to StudentAid.gov/consolidation, select “Consolidate my defaulted loans,” and log in with your FSA ID.
Choose IDR: You must agree to repay the new consolidation loan under an Income-Driven Repayment (IDR) plan.
Submit Immediately: Submitting the application before your 30-day notice period ends is what stops the collection process and finalizes the cancellation of the garnishment order.

Option 2: Loan Rehabilitation

If you are unable to consolidate within the 30-day window, entering into a Loan Rehabilitation agreement is your next best way to stop the initial garnishment order. Rehabilitation won’t cancel the default immediately, but starting the process during your notice period can prevent the order from being sent to your employer.

Here’s what to do before your 30-day period ends:

Contact the Agency: Call the collection agency listed on your Notice of Intent, or the Default Resolution Group at 1-800-621-3115. State clearly that you want to enter a loan rehabilitation agreement.
Establish Payment: Work with the agency to calculate a “reasonable and affordable” payment based on your income.
Make the First Payment: Signing the agreement and making your first qualifying monthly payment before the 30-day deadline shows good faith and instructs the collection agency to suspend the final garnishment order.

FAQS

How long do I have to stop the garnishment?

You have 30 days from the date the Notice of Intent was sent to act. During that time, you can stop the order by submitting a Direct Consolidation Loan application or by entering a rehabilitation agreement and making your first payment before the deadline passes.

What happens if I miss the 30-day deadline?

If you don’t act within 30 days, your employer will receive the wage order and deductions of up to 15% of your disposable pay will begin. You can still request a hardship hearing or enter loan rehabilitation, but garnishment continues until your fifth qualifying payment or the hearing decision.

Can I challenge the garnishment based on the debt itself?

Yes. Within 30 days of the notice, you can request a hearing in writing to dispute the debt. You may present evidence that the loan isn’t enforceable, the balance is incorrect, or that the proposed garnishment would cause a financial hardship.

Does a hearing request stop the garnishment?

Yes—if your request is filed within 15 business days of the notice date, the government must pause wage withholding until a decision is issued. If it’s filed later, the hearing still occurs, but deductions can continue while the request is under review.