What is Student Loan Wage Garnishment?
A wage garnishment is an official notice sent to your employer on behalf of your lender or the IRS. The notice informs your employer that they are obliged to siphon some of your income toward the debt that you owe. If you just received a notice from your lender or the government warning you of a wage garnishment, you need to act fast. A lender or IRS wage garnishment is a serious matter that puts your financial future at risk. The institution must always give you thirty days to respond before officially seizing your funds, but if you fail to respond the government or private lender can issue a strict hold on your income and assets to pay off your debt. Wage garnishments don’t come from out of the blue. If you just received notice in the mail explaining a wage garnishment, then you have already defaulted on your student loans. Lenders will contact you through email and paper mail urging you to make payments. For federal loans, you are considered to be in default if you’ve failed to make a payment for at least 270 days. Default for your specific loan may be different depending on the lender, so you should do your research before you respond. Find your loan’s default rules by reading the promissory note that you signed when you took out the loan. Even parents of students can get in trouble. If you, your parent, or any other authority cosigns for a loan, that person is also responsible for repayment. When you receive a wage garnishment as a cosigner, it’s important to speak to your child and make sure the statement is correct.Not sure you understand student loan wage garnishment?
We can help. CONTACT US TODAYHalt Your Student Loan Garnishment Today
How We Stop Garnishments for Student Loans
Garnishments can be settled in a variety of ways. Our tax lawyers have experience settling a wide variety of tax and student loan related issues. We know that there are ways you can pay your loan in a reasonable manner without breaking the bank. Below are just a few ways we can make that happen.Win a Hearing
If you have a discrepancy with your garnishment or you believe you’ve been garnished unfairly, we can schedule a hearing to make your case. At Community Tax, our team of dedicated tax lawyers have the ability to represent you on your behalf in the court of law. If your case is a success, we can help reconcile your debt or even obtain student loan debt forgiveness.Consolidate your Student Loans
Loan consolidation is the most common solution to relieving student debt. Consolidation occurs when all individual student loans are combined into one loan from a single lender, which is then used to pay off the debt of all your loans. Should the lenders agree to student loan consolidation, you have the opportunity to propose alternative payment plans that make paying the debt more manageable. Consolidation loans are typically available for most federal loans such as Stafford, PLUS, SLS, FISL, NSL, HEAL, Health Professional Student Loans, Guaranteed Student Loans and Direct Loans. In some circumstances, some lenders may offer private consolidation loans if you used private education loans.Looking to consolidate your student loans?
Our experts at Community Tax can help determine the best plan for you. CONTACT US TODAYStudent Loan Rehabilitation
Loan rehabilitation is a one-time opportunity for a student or parent to clear the default on their defaulted federal education loan. Should you default again after getting cleared the first time, you won’t be able to rehabilitate the loan again. Getting your loan rehabilitated is an essential step to clearing yourself of a loan garnishment. Once you’ve managed to make 3 consecutive on-time full monthly payments on your defaulted loan, it will be consolidated. To clear your credit history of a defaulted loan, you need to make 9 out of 10 consecutive on-time payments in full. To rehabilitate your student loan, you may have to add collection costs up to 18.5 percent of the unpaid principal balance including accrued interest to the remaining balance of the loan.Create a Repayment Agreement
The repayment agreement allows you to pay back your loan in a manner that works best for your financial circumstances. There are seven popular repayment plans that you can settle for to pay back your loans:-
Standard Repayment Plan
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Graduated Repayment Plan
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Extended Repayment Plan
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Revised Pay as You Earn (REPAYE)
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Income-Based Repayment Plan (IBR)
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Income Contingent Repayment plan (ICR)
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Income-Sensitive Repayment Plan