January 7, 2026
Borrower Alert: Connecticut Student Loan Ombudsperson Reminds Borrowers That the Federal Government Will Send Wage Garnishment Notices to Some Borrowers in Default
HARTFORD - The Connecticut Student Loan Ombudsperson is reminding borrowers that the U.S. Department of Education will begin sending out wage garnishment notices on January 7, 2026. If you have federal student loans and have defaulted on payments, it's important to be aware that your wages can be garnished by the federal government to recover the money owed.
“Connecticut borrowers need to take immediate action if they receive a notice from the U.S. Department of Education,” says Michelle Jarvis Lettman, Connecticut Student Loan Ombudsperson. “Having your wages garnished can have a rippling effect to a borrower’s finances.”
Wage garnishment is when a portion of your paycheck is automatically taken by your employer and sent to the U.S. Department of Education, or its collection agency, to pay off your student loan debt. This is a legal way for the government to collect unpaid loans after other attempts to collect have failed.
The federal government can begin garnishing your wages for student loan debt after a period of missed payments, usually after you have been in default for 270 days. Under federal law, the maximum amount that can be garnished from your wages is 15% of your disposable income, which is the amount remaining after mandatory deductions (like taxes and Social Security).
Here are some steps borrowers can take:
- Contact your loan servicer – If you’re struggling to make payments, reach out to your servicer to discuss alternative repayment options, such as Income-Driven Repayment (IDR) plans, which base your payments on your income.
- Enter a forbearance or deferment – If you're temporarily unable to make payments, you may qualify for a deferment or forbearance, which can temporarily stop wage garnishment.
- Consolidate your loans – If you have multiple federal loans, consolidating them into a Direct Consolidation Loan may help you manage payments more easily and avoid default.
- Rehabilitate your loans – If your loans are in default, you may be able to rehabilitate them by agreeing to a new payment plan. This can stop wage garnishment and help you avoid further collection efforts.
If you receive a notice of wage garnishment, act quickly. The federal government must provide you with a written notice at least 30 days before garnishment begins. You can request a hearing to challenge the wage garnishment. If garnishment causes undue hardship, you may qualify for a reduced garnishment or other relief options.
“It’s crucial to take action early, whether by contacting your loan servicer or exploring deferment, forbearance, or repayment options,” advises Ombudsperson Jarvis-Lettman. “Don’t wait until garnishment begins—take control of your student loan situation today!”
If you have any questions, contact the Student Loan Ombudsperson Office by calling 860-240-8122 or emailing dob.studentloanombuds@ct.gov. You may also book an appointment through the online appointment portal. To receive monthly updates on student loan topics, sign up for the Ombuds Observer, our free online newsletter bringing helpful tips and timely updates on education loans.
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Contacts:
Student Loan Inquiries:
Michelle Jarvis-Lettman
Phone: 860-240-8122
dob.studentloanombuds@ct.gov
Media Inquiries:
Matt Smith
203-996-1241
matthew.smith@ct.gov