While obtaining a college degree is a dream for many, the resulting student loan debt can quickly turn into a graduate’s worst nightmare. Upon graduation or leaving school, there is generally a short grace period before student loans enter the repayment phase. Once repayment begins, loan servicers begin demanding high monthly payments from borrowers. Oftentimes, these monthly payments are just as expensive as a borrower’s monthly rent or mortgage payment!
With such harsh demands and a poor economy, it is easy to understand why many graduates are struggling to keep up with their monthly payments. Failure to maintain monthly student loan payments can quickly result in an account being transferred from a delinquent status into a default status. Student loan accounts enter default status when they become two-hundred and seventy (270) days or more overdue. Default status is serious and can haunt borrowers.
Not only does default status cause significant damage to a borrower’s credit history, but defaulting on a student loan can result in severe consequences that are extremely difficult to escape. Consequences of student loan default include wage, tax and Social Security garnishment. Borrowers all of a sudden notice a decrease in their paychecks despite working the same amount of hours that they normally work. This is called wage garnishment and it occurs when the government seizes a portion of a default borrower’s paychecks to recoup on any outstanding debt. Similarly, the government may seize a portion of a default borrower’s Social Security checks or withhold the borrower’s tax returns.
Garnishment is not an easy hurdle to defeat. Garnishment may last the life of the loan without the help of an attorney. Student Loan Law Group’s attorneys may represent default borrowers at hearings to end the garnishment. Student Loan Law Group may facilitate rehabilitation plans with the loan servicer on behalf of the default borrower. Once the borrower successfully completes the rehabilitation plan, the default may be cured and the garnishment may be lifted. Borrowers who are in default should contact Student Loan Law Group immediately to discuss their options. If a borrower has received a default notice but has not yet been garnished, they may be able to prevent the garnishment by contacting Student Loan Law Group right away to cure the default. Student Loan Law Group is also available to help borrowers who are not yet in default but who are struggling to make their monthly payments. Borrowers seeking more information about their student loans are encouraged to contact Student Loan Law Group at 888-843-1706 today.
