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How to Stop Student Loan Tax Garnishment

How to Stop Student Loan Tax Garnishment

Student loan garnishment can break the budgets of many low income families. Ignoring your student loan debt is the absolute worst thing you can do, especially when you can’t afford your student loan payments. Eventually, the money will be recovered by garnishing your wages or even your tax returns!


Fortunately, there’s a better way. You can prevent student loan tax garnishment by signing up for one of several income based repayment plans. Low income student loan borrowers can sign up for payment arrangements that offer very low payments (some as low as $0/month!) and eventual loan forgiveness.

However, if your wages or taxes are already being garnished, it isn’t that simple. The court has already authorized the company to collect on your taxes. Although it is certainly possible to stop it, you will face an uphill battle trying to convince them to stop your student loan tax garnishment.


Get federal student loan relief now!

Struggling with student loan debt? You’re not alone! You may be eligible for help from CareConnect USA’s secure federal student loan relief line. Call them at 888-201-0431 today!

What is a student loan tax garnishment?

Tax garnishment occurs when your employer deducts money from your tax returns to pay a debt. This can only happen when you owe specific kinds of federal debts.


Usually, student loan tax garnishments are only authorized when you do not have standard wages that can be garnished instead. I personally know several people who were subjected to wage garnishments but not tax garnishments.

If your tax return suddenly disappeared because of a student loan tax garnishment, you shouldn’t be taken by surprise. Legally, the IRS is required to notify you in advance with a Notice of Intent to Levy. If you receive one of these documents, do not ignore it!

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There is a way to avoid the student loan tax garnishment, as long as it hasn’t already happened.

1. Contact your loan servicer to rehabilitate your loan and enter an income based repayment plan.

Although stopping the garnishment isn’t as easy as preventing it, it is still very possible. It all starts when you call your student loan servicer to discuss your options.

If you are low income, point out that you qualify for one of the income based repayment plans and that you were unaware of this option when you fell behind on your payments. These repayment plans can cost as little as NOTHING every month and include eventual debt forgiveness. No joke!

You may need to rehabilitate your loans in order to pursue an income based repayment plan. Rehabilitation requires you to make nine affordable monthly payments on time over the next ten months. Your rehabilitation program repayment could be as low as $5 per month!

Under the rehabilitation program, the payment amount is 15 percent of your discretionary income. Your discretionary income is the difference between the adjusted gross income on your last tax return and 150 percent of the Federal Poverty Level for your state and family size. If this payment is too large, your loan servicer may allow you to negotiate an even lower payment based on your monthly expenses.


You need to act fast!

You will need to make at least one payment before the tax return is seized, so act quickly if you receive a Notice of Intent to Levy from the IRS!

Better yet, don’t even wait to receive that letter. You can apply for an income based repayment schedule today with payments as low as ZERO dollars per month with eventual loan forgiveness after 20 years!

Want to save even more money?! Click here!


Have too much month at the end of your money? Me too - and that's how Low Income Relief got started. I have over 20 years of professional research and writing experience. Over the years, I've worked as a novelist, journalist, ghostwriter and content creator. My work has been featured in various print and online publications, including USA Today,,, Legal Beagle, The Daily Herald (Provo, Utah), The Chronicle (Centralia, WA) and others. At Low Income Relief, I use my professional research and reporting experience to help low income families save money and make ends meet. It's been my full-time job since 2016, and it's truly an honor to serve you.

Cheryl OToole

Sunday 31st of January 2021

I was working with a company, that I paid $500 to, who was working out a registration loan. This was at the start of the pandemic, so I reached out to the collection company directly to make arrangements then everything shut down. I've been since trying to get things rolling again but no one seems to be returning my calls or responding to emails. Is there anything else I can do?

Hannah Benge

Tuesday 9th of March 2021

We are so sorry! During the pandemic there are a lot of companies that have been very difficult to get ahold of. Unfortunately, short of reaching out we aren't sure what more you can do. -Hannah


Friday 29th of January 2021

Do you mean your refund?

If not, what does that mean "take away you return" ? Do you mean as if it was never filed? Even if you paid taxes?

I ask because I had weird things go on with the IRS that may have been due to ID Theft and I did not owe any federal loans.

Hannah Benge

Tuesday 9th of February 2021

Yes, we are referring to the refund being taken away. Your taxes will still show as filed, but the return will be taken away -Hannah