According to a 2013 survey, nearly a third of married couples met their spouses while attending the same technical college, university or trade school. Many of those college-educated couples owe tens of thousands, perhaps even hundreds of thousands, when they combine their student loan debt. This overwhelming debt can prevent couples from obtaining mortgage loans to purchase a new home. What most newlyweds do not realize at the time of their marriage ceremony is that they are not only marrying the other person, but they are also marrying that person’s student loan debt.
Even if only one spouse took out student loans, both spouses are responsible for making the monthly payments. In the event that the payments are not made, the student loans can be declared in default. Once student loans are in default, the government has the authority to garnish wages and taxes. Paychecks may be garnished up to twenty-five percent (25%). This means the government can automatically seize a portion of a person’s paycheck and the employer pays that seized portion directly to the government instead of the individual. The government may also seize not only the borrower’s entire tax return but also that of his or her spouse in order to recover for outstanding student loan debt.
Garnishment penalties wreak havoc on not only the initial borrower, but oftentimes his or her entire family as well. Spouses rely on each other’s income to support their household. Therefore, when one spouse suddenly experiences a dramatic reduction of his or her income, their spouse likely feels the pain as well. Student Loan Law Group recognizes that borrowers and their spouses face severe struggles in avoiding garnishment and escaping default status on student loans.
Student Loan Law Group protects borrowers’ rights and the rights of their spouses. Borrowers who have received notice of default on their student loans have a short time to take action before garnishment is imposed. Once garnishment is imposed, it is extremely difficult to reverse. Borrowers who are in default or who are struggling to maintain their monthly student loan payments are encouraged to contact Student Loan Law Group today to consult with an attorney about their rights.