Student loan wage garnishment works like this: Default on your federal student loans and the government can take up to 15% of your paychecks. For someone who normally takes home $2,000 each month, that amounts to $300 garnished. Payments have been paused for most federal student loans sinc...
Collection agencies must wait 31 days before reporting any debt. If you can pay a delinquent bill before that 31st day, you can likely avoid damage to your credit score and credit report. You have even more time with medical debt. When a collection agency has a medical debt, they have to...
If you don't pay your student loans, yourdelinquencyand/or default can be reported tocredit agenciesand result in a lower credit score. Private lenders can send your account tocollectionsor sue you. For federal student loans, your wages can begarnished, yourtax refundseized, and you might b...
“If you don’t show up, the court will probably issue a judgment against you for the amount that the debt collector is suing you for. The debt collector can also attempt to find out where you work and garnish your wages. They can try to find out where you bank too, and freeze ...
when the original lender charges off a loan, it’s sent to a third party, such asa collection agency, which takes over pursuing debt repayment. Collection efforts may include suing you for repayment. If there’s a judgment against you, a portion of your wages may be garnished as ...
However, we need to keep the end goal in mind: getting rid of student loan debt. And note that learning how to get rid of student loan debt without paying doesn’t work. You can’t shake off student loans, and you might find yourself in a position of having your wages garnished to...
left with several thousand dollars in loans. The collection agent convinced me that my wages would be garnished and the former school's owners would take everything else in court. I was genuinely scared, so I sought out a bankruptcy attorney in town and he agreed to help me file Chapter ...