Charleston 7/22/2015 9:03:38 PM
News / Education


Defaulting on student loans often comes with devastating consequences that can severely disrupt a student loan borrower’s lifestyle. The federal government can attempt to collect outstanding federal student loan debt through three methods of garnishment: wage, tax and Social Security. Garnishment occurs when the government seizes or withholds funds that would otherwise be distributed to the default borrower. By law, the government may seize up to 25% of a borrower’s disposable income when that borrower has defaulted on his or her student loans.

A default occurs when a student loan account is two hundred and seventy (270) days or more overdue. Once default occurs, the government may immediately begin garnishing the borrower or the borrower’s co-signer’s paychecks and/or Social Security checks without a hearing. The government may also withhold the borrower’s, borrower’s spouse’s, or borrower’s co-signer’s tax returns to recoup on the outstanding student loan debt. Obviously, it is a huge financial burden on a family to have their tax return withheld or to have one of the bread-winner’s paychecks reduced.

Student Loan Law Group can help borrowers who have defaulted on their student loans and are experiencing garnishment. Attorneys with Student Loan Law Group may request hearings on the borrower’s or co-signer’s behalves to fight garnishment. Student Loan Law Group’s attorneys also have success in negotiating rehabilitation plans with the loan servicers to give default borrowers an opportunity to cure their default. For more information on how Student Loan Law Group can help with your student loan issues, contact us today at (888) 843-1706(888) 843-1706 FREE.