# Student loans in default and your pay is being taken > Federal student loans usually default after about 270 days of missed payments. Then up to 15% of your take-home pay, tax refunds and part of some federal benefits can be taken without a court case, after notice. You can request a hearing by the notice deadline for hardship or errors. To get out, rehabilitate (9 affordable monthly payments, removing the default from your credit history) or consolidate into a new loan. It’s free through StudentAid.gov. Private lenders usually must sue first. - URL: https://explained.page/student-loans-in-default - Language: en - Last checked: 2026-10-29 - Watch the 1-minute animated guide: https://explained.page/watch?start=student-loans-in-default ## Step by step 1. **Federal student loans in default?** Your pay, tax refund or even part of Social Security can be taken. But there are clear ways out of default. 2. **How default happens.** Federal loans usually go into default after about 270 days of missed payments. Then the whole balance can be due, plus collection costs. 3. **Know what can be taken.** For federal loans, up to 15% of your take-home pay, tax refunds and part of some federal benefits, without a court case. You must get notice first. 4. **Got a garnishment notice? You can ask for a hearing.** Respond by the deadline in the notice. You can object for hardship or errors, or set up an agreement to avoid garnishment. 5. **Two main ways out of default.** Rehabilitation: make 9 affordable monthly payments, and the default comes off your credit history. Consolidation: combine into a new loan and start a repayment plan. 6. **Contact the official office, not a paid service.** Start at StudentAid.gov to find who holds your defaulted loans. Getting out of default is free; never pay a company to do it. 7. **Private loans work differently.** Private lenders usually must sue and win in court before taking your pay. If you’re sued, respond on time and get legal help. 8. **Look it up the right way.** Search with your town or state in the words. Pick the official site: it usually ends in .gov. Skip ads and sites that charge for free forms. ## Checklist - Know how default happens - Know what can be taken - Respond to garnishment notices on time - Rehabilitate or consolidate - Start at StudentAid.gov; it’s free - Private loans: respond if sued ## How default happens Federal student loans usually go into default after about 270 days of missed payments. The full balance can become due, and collection costs may be added. ## What can be taken (federal loans) - **Wage garnishment:** up to 15% of your disposable (take-home) pay, without a court order. - **Treasury offset:** federal tax refunds and part of certain federal payments, including some Social Security benefits. You must receive written notice first, with a deadline to respond. ## Respond to notices You can request a hearing to object, for example due to financial hardship, an incorrect amount, or if you were recently rehired after being fired. You can also set up a repayment agreement. ## Ways out of default - **Rehabilitation:** make 9 voluntary, reasonable and affordable monthly payments within 10 months. The default record is removed from your credit history, and garnishment stops after enough payments. Usually available once per loan. - **Consolidation:** combine defaulted loans into a new Direct Consolidation Loan and choose a repayment plan. - **Pay in full,** if possible. ## Use free official help Start at StudentAid.gov to find who holds your loans. Never pay a company to get out of default. ## Private loans Private lenders generally must sue and win a court judgment before garnishing wages. If you’re sued, respond on time and seek legal help; old debts may be past your state’s time limit. ## Common questions ### Can they take my Social Security for student loans? Part of certain Social Security benefits can be offset for defaulted federal student loans, with limits. Get notice and respond quickly. Source page: https://explained.page/student-loans-in-default/questions/can-they-take-my-social-security-for-student-loans ### Does rehabilitation fix my credit? It removes the default notation, though earlier late payments may remain on your report. Source page: https://explained.page/student-loans-in-default/questions/does-rehabilitation-fix-my-credit ### How much can be garnished for defaulted student loans? For federal loans, up to 15% of your disposable pay through administrative wage garnishment, without a court order, after written notice. Source page: https://explained.page/student-loans-in-default/questions/how-much-can-be-garnished-for-defaulted-student-loans ### How do I get my student loans out of default? Through loan rehabilitation (9 affordable monthly payments in 10 months), consolidation into a Direct Consolidation Loan, or paying in full. Source page: https://explained.page/student-loans-in-default/questions/how-do-i-get-my-student-loans-out-of-default ### Can I stop a student loan wage garnishment? You can request a hearing by the deadline in the notice to object for hardship or errors, or enter an agreement. Rehabilitation can stop it after enough payments. Source page: https://explained.page/student-loans-in-default/questions/can-i-stop-a-student-loan-wage-garnishment ### Will they take my tax refund for student loans? Defaulted federal student loans can lead to your federal tax refund being taken through the Treasury Offset Program. Source page: https://explained.page/student-loans-in-default/questions/will-they-take-my-tax-refund-for-student-loans ### What is student loan rehabilitation? A one-time way out of default: make 9 reasonable, affordable monthly payments within 10 months, and the default is removed from your credit history. Source page: https://explained.page/student-loans-in-default/questions/what-is-student-loan-rehabilitation ### Can private student lenders garnish my wages? Usually only after suing you and winning a court judgment. Respond to any lawsuit on time. Source page: https://explained.page/student-loans-in-default/questions/can-private-student-lenders-garnish-my-wages ## Official sources - [StudentAid.gov: getting out of default](https://studentaid.gov/) - [CFPB: student loans](https://www.consumerfinance.gov/) - [FTC consumer advice: student loan debt relief scams](https://consumer.ftc.gov/) To find your local office, search for: - "studentaid.gov default resolution group" - "student loan wage garnishment hearing request" --- General information, not legal or professional advice. Rules differ by state. From explained.page (www.explained.page). Life’s stuff, explained simply.