Can my wages be garnished if I am making payments in student loan?

My federal student loan has recently gone into default. A collection agency has threated to garnish my wages, unless I make payments that I could not afford. I do however want to give them something. I have set up a payment program with them for a more reasonable amount and as soon as I started paying they... show more My federal student loan has recently gone into default. A collection agency has threated to garnish my wages, unless I make payments that I could not afford. I do however want to give them something. I have set up a payment program with them for a more reasonable amount and as soon as I started paying they immediatley garnished my wages. When I called them they said they have to do this for 9 months, in what they are calling a rehab program, in which they will garnish 15% of my wages even though I am making payments. When I calcualted my check it is like 24.5% being garnished( I live in MIchigan). I may not have the money to pay them what I agreed upon now. I have mortgage and other bills to worry about.
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