Notice: Undefined index: articledetail in /home/utils/securefiles/securecode/utl_article.cls.php on line 646
Wage Garnishments, Part 1 |
College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider

Wage Garnishments, Part 1
Defaulted student loans make you subject to wage garnishments, another of the fierce tools available to the hands of the Department of Education. But let me explain this process in a bit more detail because it is very different than a traditional wage garnishment. The kind of garnishment that the Department of Education can do is called an administrative wage garnishment.

This means they do not have to go to court, as do other creditors, in order to get a judgment against you from a court of law. With an administrative wage garnishment, an order is simply sent to your employer, requiring your employer to forward money right out of your paycheck to repay your student loan. The garnishment amount ranges from 10 to 15 percent of your disposable pay. So clearly, all of these negative consequences suggest that you do not want to be in a defaulted loan situation. It's worth you going to great lengths and doing everything in your power to prevent a default or get a defaulted loan out of default status.

Your student loans aren't subject to a statute of limitations, as are other forms of debt, like credit cards. So if you owe, ultimately you have to pay up or risk nasty things like wage garnishments. Not only is that a hugely embarrassing, and potentially career-damaging thing to happen to you at work, but a wage garnishment can put a serious crimp in your already tight budget.

Under the law, if the Department of Education pursues an administrative wage garnishment against you, the department can require your employer to turn over 10 percent of your disposable pay to be diverted in order to pay off your past-due student loan debt. This is all done without so much as a court hearing or a judgment against you. In fact, federal regulations require guaranty agencies to initiate wage garnishments as a means of enforcing defaulted loans.

The Debt Collection Improvement Act of 1996 authorized federal agencies, including the Department of Education, to garnish up to 15 percent of a debtor's disposable pay. So can anything be done about it? Actually, yes. You can fight the wage garnishment and demonstrate why it is that you can't afford that the payments and wage garnishment your lender or guaranty agency is seeking.

You'll build your case based upon various factors, such as your high day-care costs, your large credit card bills, your medical bills, and so forth. You then offer a counterproposal saying what amount you can afford to pay to the Education Department. All you need to do is fill out a three-page form to get the process started. This form is called a Financial Disclosure Statement, and it's designed especially for wage garnishment cases. Track down a copy of this statement on the Internet by visiting the Department of Education online at


Article Title : Wage Garnishments, Part 1
Comments :
finally some inof on this subject. I have talked to several attorneys about this
subject and very few can offer any advice.
I attended school from 1996 to 2001
. In 2001 the medical school had their accreditaion placed on probation. In 2002
the school lost their accreditaion. This means that I cannot even apply to take
a state exam to receive a license to practice medicine. I am currently part of
a class-action lawsuit against the school, but the student loan people are conti
nuing to pursue me to repay my loans.
This has had to happen to other students,
having the school they attended loose their accreditation while they were in sch
ool or close to graduation.
If anyone has any suggestions or any experience wit
h this I would appreciate your response. I guess you can post a comment on this
website as a reply to this article.

Posted By : Ernest Williams


Related articles
• What Happens When You Default On Student Loans and Credit Cards
• Credit Repair - Student Loans
• Fight the Financial Crisis With Student Loan Consolidation
• Bankruptcy Student Loans - How To Use It To Pay Off Your Debt
• Student Loan Debt Consolidation - The Effective Solution For Eliminating Debt

Share this story:
  • BlinkList
  • blogmarks
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz

EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
Thanks to Law School Loans and my above-par loan counselor, I know where to go if I ever have questions about my student loans again! Thank you so much, you've been very helpful and have helped to make my "financial situation" a little more bearable!
- Shannon P.  Chicago, IL
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Unconsolidated student loans typically have a loan term of 10 years, while consolidation loans can have terms up to 30 years.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2020 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives