For graduating students of today, it is getting harder and harder to find a job after college. In this economy, employers are hiring more experienced professionals. So, recent graduates are often forced to apply for only entry-level positions or remain unemployed. With thousands of dollars in school loan debt, what can these desperate graduates do?
Finances often become a real problem for many student borrowers not too long after finishing college. That entry-level job will only pay so much and with the average cost of living today, there’s just no room to worry about student loan trouble after paying rent, buying food and simply trying to survive. This unfortunate group of Americans will put off repaying student loans for as long as they possibly can.
When current circumstances demonstrate little hope for finding employment with an adequate salary, paying back student loans frequently becomes a last priority and the student loan(s) goes into default status. Unfortunately, a student loan and bankruptcy do not mix due to federal student loan laws because the debt is not bankruptcy dismissible. After 270 days on a defaulted loan, the lender has the ability to begin the process for private or federal student loan garnishment on wages and tax refunds without a court order.
When you default on a student loan and continue to ignore your lender’s attempts to communicate with you, whether by phone or written correspondence, it is inevitable that you will eventually have to deal with a wage or tax refund garnishment. U.S. federal garnishment laws allow student loan collection agencies to take as much as 15% of a default borrower’s wages (some state garnishment laws allow as much as 25%) and as much as 100% of your tax refunds.
If you thought it was difficult enough trying to meet your financial obligations before, once a wage or tax garnishment is deducted from your pay – life will become even more difficult. Many Americans rely on tax refund checks in the spring each year to pay for repairs, improvements and other expenses they could not otherwise afford. Imagine counting on a tax refund check only to find out at the last minute the refund has been garnished.
How to Stop Tax Garnishment
The good news is that there are solutions to stop student loan garnishment. Canty & Associates provides delinquent student loan help for debtors Nationwide. We help our clients to refinance their college debt with loan modification programs that complement their particular financial situations. Although borrowers are able to take the steps on their own to restructure student loan debt, our experienced and knowledgeable in-house consultants have the ability to process a refinance more quickly and with very little hassle on the client’s part.
Fill out the form to find out how stopping a wage or tax garnishment due to student loan debt, or simply submit your request with our online submission form. We look forward to assisting you.