Student Loan Wage Garnishment Timeline: From Missed Payments to Paycheck Withholding

Updated on December 24, 2025

Federal student loan wage garnishment does not start right after you miss payments. It follows a set sequence that usually takes months.

The process starts with missed payments. It then moves into default. Wage withholding only happens at the end, after formal notice is sent and waiting periods pass.

Missed Payments and Delinquency (0–270 Days)

Once you miss a federal student loan payment, your loan becomes delinquent—but nothing can be taken from your wages at this stage. Delinquency continues as long as the payment remains unpaid.

During delinquency:

Your loan servicer records the missed payments.
Late fees may accrue.
Credit reporting can begin.
You usually receive billing statements and warning notices.

Delinquency does not trigger wage garnishment under federal law. Your employer is not contacted, and no money can be taken from your paycheck at this stage.

For most federal student loans, delinquency lasts until about 270 days of missed payments. After that point, the loan leaves delinquency and enters default, which changes what the government is legally allowed to do.

When Default Begins (Around 270 Days)

After about 270 days of missed payments, a federal student loan enters default, which expands the government’s collection authority. At that point, the loan is no longer just delinquent. It is legally classified as being in default.

When default begins:

The loan leaves regular servicing.
It enters the government’s default collections system.
The government gains access to stronger collection tools.

Default alone does not mean wages are taken. No employer is contacted, and no money is withheld just because a loan has entered default.

What changes at default is authority, not timing. Wage garnishment still comes later and requires additional notice and waiting periods.

Before Wage Garnishment Starts (After Default)

After default, there is often a period where collections increase but wages are still not being taken. During this period, collections activity can increase, but wages are still not being withheld.

During this phase:

The government can pursue collection activity internally.
You may receive additional letters about the default.
Your employer is not involved.
Wage garnishment is not automatic.

This gap exists because garnishment requires separate procedural steps. The government must decide to pursue garnishment and issue a formal notice before any withholding can occur.

For many borrowers, this phase lasts weeks or months. The absence of wage withholding does not mean garnishment has been avoided. It means the process has not reached that step yet.

Wage Garnishment Notice Is Sent

Wage garnishment begins with a written notice, not with money taken from your paycheck. The government sends a wage garnishment notice stating its intent to withhold wages for a defaulted federal student loan. This notice is sent before any employer is contacted.

The notice explains:

That wage garnishment is being initiated.
The maximum amount that may be withheld under federal limits.

The notice also triggers a mandatory waiting period, usually 30 days. During this time:

No wages are withheld.
Your employer is not contacted.
Garnishment is not yet in effect.

This notice is the point where garnishment becomes imminent. It still does not begin until the waiting period ends and a separate employer withholding order is issued.

Employer Withholding Begins

Wage garnishment becomes real only after the government sends a withholding order to your employer. This happens after the notice period ends.

Once the employer receives the order:

The employer must withhold wages.
Garnishment starts with the next applicable pay period.
Money is taken directly from your paycheck and sent to the government.

At this point, garnishment is in effect, not pending. Withholding continues each pay period until it is stopped through a separate administrative or legal action.