It is not uncommon today for student loan borrowers to end up in default status. Jobs are much harder to come by for both recent graduates, as well as college graduates who have been in the job market for quite some time. Tuition rates have increased immensely over the past twenty years and the population in the United States continues to grow.
Private student loan lenders must file a lawsuit and obtain a judgment prior to garnishing wages. However, the Government needs no court order to begin garnishing wages for federal loans. The only requirement is a written notice to the debtor thirty (30) days prior to the beginning of a garnishment. A wage garnishment notice typically is sent out after a student loan has been in default for 270 days.
How to Stop Wage Garnishment for Student Loans
It is possible to stop a student loan wage garnishment, but the laws depend on whether it’s a private or federal loan. Federal student loans default on certain loan programs, such as the Stafford, Perkins, and PLUS loans allows the government to garnish wages up to 15% (in some regions – the amount may be as much as 25%). Federal and state tax returns may also be garnished up to 100% of the refund amount.
If your federal student loan wage garnishment is causing undue financial hardship, our student loan specialists will make every effort to negotiate an affordable repayment plan. However, you will need to supply valid proof that the garnishment is causing undue financial hardship, such as the inability to make your rent or mortgage payments on time.
There are a variety of refinance programs available that provide the resources necessary to help those in need of student loan default assistance. These programs offer garnishment help to make it easier for delinquent borrowers to get back on track, so they may begin making payments again.
Our office receives limitless phone calls and emails each and every day with frantic debtors who have received notices that their wages will be garnished if a resolution is not reached within thirty days (or less depending upon when the borrower received the notice).