Student loans can generally be settled, but a loan typically has to be in default. A lender isn’t likely to accept less than what you owe if it has reason to believe The loan holder may withhold your tax refund and Social Security benefits, garnish up to 15 percent of your disposable pay, and take your.Student loans can bring education within reach, but paying them off after graduation requires that you earn Plead Your Case. To prevent your wages from being garnished, request a hearing with the You essentially make two monthly payments on your student loan: The garnishment amount taken.