Loan holders can garnish up to 15 percent of your disposable pay to repay your federal student loans and up to 25 percent of your disposable pay to repay private student loans — though this can vary by state.

Are student loans being garnished in 2021?

Department of Education (ED) has suspended garnishment on federally held student loans through September 30, 2021, in response to the Coronavirus pandemic. ... If ED receives funds from a garnishment between March 13, 2020 and September 30, 2021, they will refund the wages to the individual.

Are student loans typically dischargeable?

The quick answer is that student loans typically are not dischargeable in bankruptcy. However, there are exceptions. ... As many borrowers struggle to repay student loan debt, bankruptcy is one strategy that gets offered as a potential option.