Both the federal government and private lenders are capable of garnishing a student loan borrower’s wages to repay a debt. For federal student debt, a legal judgment against you is not necessary for wage garnishment, while private lenders can take you to court and obtain permission to do so.Also, parents who take out loans for their children and anyone else who co-signs on a student loan may be at risk of wage garnishment if the borrower falls significantly behind on payments, especially for private loans.For federal student debt, the Department of Education is also capable of withholding your tax refunds or reducing benefits like Social Security.
Wage garnishment can be prevented or stopped in four ways: loan rehabilitation, loan consolidation, winning a hearing, or paying off the debt. Because it is rarely the first step taken by a loan servicer and usually comes after a significant period of not paying and several efforts to contact you and collect the debt, there is plenty you can do to get back on track before the government or a private lender resorts to wage garnishment. If you are struggling with student debt or having your wages garnished, contact an experienced student loan attorney today for a free consultation.