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Federal Student Loan Garnishment Restarted: Why Florida's Wage Exemption Will Not Save You, and What Will

Student Loans

In January 2026 the Department of Education resumed garnishing wages of borrowers in default on federal student loans, starting with roughly 1,000 notices the week of January 7 and scaling up monthly. Around 5.5 million borrowers are in default nationwide, which means missing payments for more than 270 days. Sources: CBS News, NPR.

Florida debtors often assume the state's famous head of family wage exemption will protect them. For this particular garnishment, it will not.

Federal administrative garnishment overrides Florida exemptions

Section 222.11, Florida Statutes, fully exempts the wages of a head of family earning $750 per week or less in disposable earnings from ordinary garnishment. But administrative wage garnishment on federal student loans runs under 20 U.S.C. 1095a, and that statute expressly applies notwithstanding any state law. No lawsuit, no judgment, no writ from a Florida court, and no state exemption.

QuestionPrivate creditor with a judgmentDefaulted federal student loan
Must sue you firstYesNo
Florida 222.11 head of family exemption appliesYesNo
Maximum withholdingCCPA limits, up to 25% of disposable earnings15% of disposable pay
Advance noticeSuit, judgment, writ, and Section 77.041 notice30-day written notice with hearing rights
Tax refunds and Social Security reachableGenerally noYes, through Treasury offset

Note the trade: the federal garnishment takes a smaller slice, 15% rather than 25%, but it bypasses every state protection and can also intercept tax refunds and up to 15% of Social Security benefits, with the first $750 per month protected.

Private student loans are the opposite case. A private lender must sue in court and win, and Florida's exemptions, including Section 222.11, apply with full force.

The 30-day notice is your best weapon

Before withholding starts, the borrower receives a written notice and may:

  • request a hearing disputing the existence, amount, or enforceability of the debt;
  • object based on financial hardship, with a budget showing income and necessary expenses;
  • stop the garnishment entirely if they were involuntarily terminated and have been re-employed less than 12 months;
  • demand loan records, which matters because defaulted accounts often passed through multiple servicers.

A hearing request filed within the notice deadline generally holds off garnishment until the decision. Missing the deadline does not waive the hearing right, but the garnishment can begin while you wait.

Exits from default

ExitMechanicsPractical note
RehabilitationNine agreed payments in ten monthsEnds garnishment on completion, removes default, once per loan
ConsolidationNew Direct Consolidation Loan plus income-driven repaymentFaster, but the default history remains
Lump-sum payoffFull balance and interestRarely realistic

Rehabilitation payments are negotiated from actual income and expenses and can be low. For a working Floridian already losing 15% of each paycheck, rehabilitation usually dominates the alternatives.

The bankruptcy option, stated honestly

Student loans are not discharged in an ordinary bankruptcy; the debtor must prove undue hardship in an adversary proceeding, a standard that is demanding but no longer hopeless, particularly for borrowers with disabilities, long repayment histories, or retirement-age income. What bankruptcy always does is trigger the automatic stay under 11 U.S.C. 362, which stops an administrative wage garnishment during the case, and a Chapter 13 plan can reorganize the whole budget while the student loan strategy plays out.

The right sequence depends on the numbers: how deep the default is, what else is being collected, and what the household can actually pay.

If the notice already arrived

Bring the notice, your loan history, and your last two pay stubs to a review before the deadline runs. You can start a confidential garnishment case review here or call 877-862-7188.

Questions About Florida Bankruptcy?

Free consultation with Attorney Fraser — same-week appointments typically available. Phone or video. FL Bar No. 625825 · DC Bar No. 460026.