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Can Government Garnish Wages Student Loans

Last Updated on November 14, 2022 by Fola Shade

You’ve probably heard of wage garnishment, which happens when a creditor takes a portion of your paycheck to cover what you owe them. But did you know that the government can also do that? In this post, we consider: can government garnish wages student loans, student loan pause, can student loans garnish your spouses wages, can student loans be forgiven and can private student loans garnish wages.

If you’re a student who’s fallen on hard times, you might be wondering if the government can take your wages to pay off your debt. Read on to find out if government can garnish wages to pay student loans, student loan pause, can student loans garnish your spouses wages, can student loans be forgiven and can private student loans garnish wages.

Can Government Garnish Wages On Student Loans

We begin with can government garnish wages on student loans, then student loan pause, can student loans garnish your spouses wages, can student loans be forgiven and can private student loans garnish wages.

Can the government garnish my wages to pay back student loans?

The short answer is yes, but there are some important details you should know.

If you default on your federal student loans, the government can take up to 15% of your paychecks—that’s a lot of money! For someone who normally takes home $2,000 each month, that amounts to $300 garnished. The holder of your federal student loans can garnish your wages without filing a lawsuit or getting a judgment against you. Under the Higher Education Act and the Debt Collection Improvement Act, federal student loan holders can use an administrative process to begin and continue a wage garnishment.

student loan pause

Next, we consider student loan pause, can student loans garnish your spouses wages, can student loans be forgiven and can private student loans garnish wages.

Student loan pause. Will it continue?

This is a question that many people are asking themselves right now. The answer is yes, but only for a little while longer.

President Trump issued an extension on the student loan payment pause, which was set to end on May 31, 2022. This extension lasted until August 31, 2022. As we approach the end of this extension, many people are wondering whether or not it will be extended again.

The answer is that there hasn’t been any official announcement yet from either the White House or from Congress about whether or not the student loan payment pause will continue past August 31st. However, in order for this to happen, both President Trump and Biden would have to agree on something—and given their history of disagreement on this issue, it’s unlikely that either of them will agree on anything without some sort of fight first!

As much as we’d like to say “yes” definitively—we just can’t do that right now because there’s no official word yet on whether or not there will be another extension. But if you’re worried about paying off your loans before September 1st—there’s no need to panic just yet!

Dealing With Student Loan Wage Garnishment

can student loans garnish your spouses wages

More details coming up on can student loans garnish your spouses wages, can student loans be forgiven and can private student loans garnish wages.

As a married couple, you and your spouse are responsible for paying the debt incurred by one of you. This means that when one spouse defaults on student loans, the other spouse may be held responsible—and in some cases, this could mean wage garnishment or Treasury offsets. But there are ways to protect yourself from these consequences.

First and foremost, it’s important to know that you cannot become subject to wage garnishment or Treasury offsets for your spouse’s debt. However, a student loan default will result in damage to that person’s credit score, so it’s important to know that it could affect you in other ways, like if you wish to buy a home together.

Second, if your spouse is struggling with their student loan payments and can’t afford them anymore but is still able to work full time at their current job, they may want to consider early repayment options available through their lender or servicer. These options often include reduced monthly payments based on income or extended repayment terms—which could make things easier on both spouses’ finances.

can student loans be forgiven

Student loans can be forgiven in two ways: through debt forgiveness programs and through bankruptcy.

How Student Loan Wage Garnishment Guts Your Paycheck - NerdWallet

The federal government offers a number of different debt relief programs to help struggling borrowers. Most of these programs forgive some or all of the borrower’s loan balance after a period of time. These include:

  • Repayment plans: Income-driven repayment (IDR) plans are designed to make it easier for borrowers to manage their payments by capping monthly payment amounts at 10% of discretionary income. The government forgives any remaining debt after 20 years on IDR plans, which include income-based repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR).
  • Forbearance: If you’re having trouble making your payments, you may qualify for forbearance, which allows your lender to temporarily stop collecting payments while you get back on track financially.
  • Loan consolidation: This option allows you to combine multiple federal loans into one new loan with a lower interest rate and extended repayment term. You can apply for consolidation if you have no outstanding balances on federal loans when you first apply for consolidation;

can private student loans garnish wages

It’s true: If you don’t pay your private student loans, they can garnish your wages.

What does that mean? Well, it means that if you default on a private or federal student loan, the lender can sue you and get a court judgment against you. If the wage garnishment is approved, which it usually is, the lender will be able to withhold up to 25% of your pay.

If this happens, you’ll get letters from your employer notifying you of the action. You may also receive a notice from the court stating that money has been withheld from your paycheck.