Nothing brings home the burden of student loans like getting a letter telling you that your wages are being garnished. Your definition of disposable income and the court’s definition might be at severe odds. However, you did not get here overnight. Your loans have to be in default – that is over 270 to 330 days delinquent – in order to have your wages garnished. When your loan enters default, that means you get the bill for that particular loan plus interest to be paid in full, including interest, collection charges, and so on, right that very minute. This is a tactic of last resort for creditors like the Department of Education and private lenders.
There are steps you can take if you need to know how to stop student loan wage garnishments – none of them are steps you are going to like, but I can guarantee you are going to dislike having a defaulted student loan on your credit for the next seven years a whole lot more. If you have a Perkins loan, that loan is on your report until you pay it off. Unemployed? Tough, they can freeze your bank accounts. And you might have to kiss those credit cards goodbye when the default hits your credit report.
If you’re starting down the road to default, you owe it to yourself not to make the trip. You might tell yourself that you can make up a skipped payment, but these things have a way of snowballing. If you are having a problem making your monthly commitments and are juggling your obligations, you need help and advice so you don’t end up in default. Call our office, set up a free consultation, and let’s sit down with your paperwork and figure out a way forward. If caught early enough, we can resolve the problem and you can have a really good outcome without working three jobs and couch surfing in the meantime.
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