What is Federal Student Loan Wage Garnishment?
After a Federal student loan has been in default for 270 consecutive days, the government has the ability to collaborate with the Department of Labor to begin the garnishment of wages. Federal Student loan wage garnishment is a way for institutions to collect on Federal student loans by acquiring a percentage of the borrower’s paycheck and then directly transferring the amount to the lender. Federal student loan garnishment laws allow the Federal government to take up to 15% of the borrower’s wages and/or up to 100% of IRS tax refunds. Some states allow federal student loan garnishments up to 25% of a borrower’s wages. In addition, no notice to the debtor is required to garnish tax refunds; nor do the lenders need a court order to begin a student loans wage garnishment; levy bank accounts and/or seize property.
The Truth about Federal Student Loan Wage Garnishment
Paying for a college education is not what it used to be. Today’s students who accept student loans are taking on serious financial burdens before they even put their feet through the doors of their first “after-graduation” jobs. In an economy that offers fewer jobs mixed with skyrocketing tuition rates, the average college graduate is literally walking off the graduation ceremony floor and into a dark doom. For the college graduate who relied on student loans to pay for a large portion of their education, a hefty amount of their after-graduation salary will be required to start the student loan repayment process within six months following graduation. Though a student loan may qualify for a temporary forbearance or deferment, forbearances should be used as a last resort because this option may only be used a few times for a student loan borrower throughout the life of the loan and interest will continue accruing regardless. Unlike credit cards, personal loans and real estate mortgages, student loans in default cannot be dismissed with a bankruptcy filing. Student loans must be repaid as agreed in the original master promissory terms. If a borrower stops making payments on student loans, the debt will eventually go into default status and the borrower forfeits the federal rights which were originally attached to the loan. Furthermore, when a student loan goes into default status, the negative information will quickly appear on the borrower’s credit report. Lastly, the borrower will no longer be eligible to receive future federal student loans and many would like to return to school to advance or finish an education.
How Can You Stop a Federal Student Loan Wage Garnishment?
The 1st thing you should do is find out the name of the lender that is garnishing (not the collection company). You can ask your Employers HR Department.Once that is done you want to long onto NSLDS.ed.gov and register, this will allow you to see every federal loan that you’ve received. You may have more than 1 lender (you can be garnished by 2 lenders at once). Once you have the name of the lender contact them and request a wage garnishment hearing, this will remove the garnishment with in 8 weeks. The key to getting garnishment lifted is to show hardship, you will have to send in copy’s of your monthly expensive. When garnishment has been lifted you can consolidate all of your federal loans into one loan with a monthly payment as low as $5 based off of your income.
We offer advice to those in need of help, If you need assistance leave your comment below explaining briefly what you student loan problem is and we will respond in a timely manner. Don’t want to leave a comment then visit our website or call now to speak with one our our agents.
http://www.defaultedstudentloanhelpnow.com/ (727) 767-0321
Student Loan Experts 