Chadwick Greer

What student loan borrowers should do when faced with wage garnishment

Rehabilitation is one of the most powerful tools borrowers can use to get out of federal student loan default. It allows you to make a series of affordable monthly payments based on your income. Most borrowers qualify for payments as low as five dollars per month. Once you complete the required number of payments, your loan leaves default, collections activity stops, and your credit report updates to show the account in good standing. Rehabilitation can also remove wage garnishment after you...

Next in our default series, we're discussing the implications of default and the financial consequences many Americans are facing in the coming months unless they take action to resolve their delinquencies. Once a federal student loan enters default, the government can collect the balance using powerful enforcement tools. Two of the most common are wage garnishment and tax refund offset. Wage garnishment allows the government to require your employer to send a portion of your paycheck...