After failures of collecting payments on student loans, government may decide to contact your employer about your debts. They would urge employer to hold back money from your pay and pay them. Your employer must comply with the law and garnish your pay. This method is called wage garnishment. Facing wage garnishment is very annoying and embarrassing situation because numerous colleagues in your organization would become aware of it. Government do carry the legal right to garnish your pay up to 15 percent but in cases where you are defaulted on more than one loans then this percentage could reach up to 25 percent which would make it a troublesome hassle to manage your funding.