Changes in the U.S. economy over the past ten years or so have created a whirlwind in the job market. Unfortunately, for recent college graduates who have attended school and invested thousands of dollars into a higher education in hopes of obtaining their dream jobs, the wind has been blowing in the wrong direction.
While these modern graduates were working diligently to fulfill their career goals, they were paying much higher tuition rates than their previous year predecessors. As these eager students marched down the red carpet on graduation day, most were unaware of the negative shift in the amount of jobs available for the industry they worked so hard for. After all, during their initial enrollment into college programs, guidance counselors had surely inspired them with details about the industry’s high demand for such positions.
Upon completion of a college degree, a typical graduate finishes their studies and reminisces about their original entry into college and holding high hopes for a bright future. Ready and eager to enter a new world with promise – what could go wrong? After four or more years of consecutive hard work, the graduate now has a degree and is confident about the future. Unfortunately, today’s new graduates are entering a new world with a completely different economy. The previous demand for employment (as statistics described originally by guidance counselors and/or program directors) in many of the programs students originally enrolled are now quite different.
This decrease in demand for employees has not only effected recent college graduates, but everyone in between. What was once an employee’s job market has become a candy store for employers. Today, many businesses claim to receive more than a thousand resumes per job advertisement. Not only are there less jobs available, but pay rates and salaries are also decreasing. What’s a recent graduate to do in an over-populated Nation with minimal jobs and less income opportunities than they originally anticipated when enrolling in their expensive college program?
Being unemployed is an unfortunate situation for anyone. However, the average recent college graduate has more to worry about than housing, car payments, food, utilities or other personal expenses. There is the repayment of student loans to worry about and the amounts borrowed are most likely much more than the amount borrowed by students in years past. In addition, interest rates are higher and there is absolutely NO WAY OUT because there is no longer such a thing as a bankruptcy on student loans.
Garnishments of Wages
Regardless if a student takes out a private or federal student loan, if the loan goes into default status, after 270 days the lender will begin the process for wage garnishment for student loans. Unlike other traditional consumer loans, no court order is required to begin garnishing wages for student loan debt. Whether a loan is subsidized or not, as much as 15% of a borrower’s disposable, monthly income may be garnished. Some states allow as much as 25% of a garnishment for student loans. As much as 100% of federal and state tax refunds may also be garnished for a default student loan.
How to Stop a Garnishment
If your wages are currently being garnished for defaulted federal student loans or you’re concerned about a potential college loan default, we can help. Call Canty & Associates today at 855-347-3001, or simply submit your request online for a FREE 30 minute consultation to find out about our affordable and convenient programs to stop or avoid wage garnishment. The process to refinance student loans or for stopping a garnishment typically takes between four (4) to six (6) weeks. We take care of all the hassle, so you can focus on your already “too busy” life while working on getting your finances back on track again.