Legal Question in Credit and Debt Law in North Carolina

I assume you are talking about a defaulted Federally guaranteed student loan, and not a private student loan which is garnishing form a judgment rendered in another state.

The amount they can garnish pursuant to administrative wage garnishment is 15% of your disposable pay. Disposable pay equals the amount left over after deductions for taxes and health insurance. You have to give written consent for them to garnish more than the 15%, but Federally guaranteed student loans do not need written consent to get the 15%. They have to leave you with at least $217.50 per week take home pay (30 times minimum wage).

You would have previously been sent a letter telling you about the right to request a hearing before they started AWG. It may still be possible to request a hearing, but the garnishment will continue until you enter an "acceptable repayment plan" or you have a favorable outcome at a hearing.

You should contact an attorney who has experience dealing with student loans for personalized advice.

Attorney Coleman is correct. NC does not recognize wage garnishment, even for private student loans (it would for federal loans). Federal student loans allow for garnishment without a hearing/trial/entry of judgment as would be required for other kinds of debts. There is no summons and complaint. However, you would be notified and given the right to request an administrative hearing.

I suggest that you contact an attorney to review your options if facing a wage garnishment. Student loans generally cannot be discharged in bankruptcy absent a hardship (there is a special test under the bankruptcy code which is difficult to meet) but if its a federal loan there may be other options depending on your circumstances.