What is Federal Student Loan Wage Garnishment?
After a Federal student loan has been in default for 270 consecutive days, the government has the ability to collaborate with the Department of Labor to begin student loan default wage garnishment. Federal Student loan wage garnishment is a way for institutions to collect on Federal student loans by acquiring a percentage of the borrower’s paycheck and then directly transferring the amount to the lender.
Federal student loan garnishment laws allow the Federal government to take up to 15% of the borrower’s wages and/or up to 100% of IRS tax refunds. Some states allow federal student loan garnishments up to 25% of a borrower’s wages. In addition, no notice to the debtor is required to garnish tax refunds; nor do the lenders need a court order to begin a student loan wage garnishment; levy bank accounts and/or seize property.
For a free consultation to stop federal defaulted student loan wage garnishment, reach out to our office by calling (727) 767-0321, or CONTACT US online through our submission form. Let us help you find a peace of mind and get your finances back in order.