About Student Loan Garnishment
After graduation from college, it can sometimes be difficult to find a career right away. Most student loans have a grace period of 6 months in which your student loan payments are deferred. This grace period is given as a way for new graduates to find places of employment. However, economic changes have made it difficult for new graduates to find a job right away, which can result in difficulty in paying back student loans. If you are in this position, your first action should be to call the student loan company and tell them your situation. Sometimes, but not always, they will arrange different payment plan options with you that allow you to pay on time. What you do not want to do is default on your student loans through non-payment. This is actually a very serious matter and can have serious consequences.
If you default on your student loan payments, you should learn more about student loan garnishment. The first thing a student loan company will do is call you and your reference contacts to get a hold of you and ask you to pay. If you still refuse to pay back your student loans, they must take harsher steps. The next step is to garnish your income taxes with the assistance of the IRS. They will do this for as long as they need in order to get their money back. Another thing you should know about student loan garnishment that they can actually withhold your monthly paychecks. Additionally, they may even need to garnish your federal benefits such as Social Security retirement benefits and Social Security disability benefits. This can leave you financially in a bind and unable to pay your bills and sometimes even your housing and medical bills.
The worst thing about student loan garnishment is that you can actually be sued for defaulting on your student loans. These charges are extreme because if you are found guilty, you will owe all your student loans, accrued interest, plus the charges due to the suit. If you hire a lawyer to represent you in the case, this will cost you even more money. A suit is by far the most expensive consequence of loan defaulting. Before you find yourself in this situation, try to remedy the problem by talking with your student loan company or getting legal help on the appropriate steps to take to ensure your financial well being.Don't let yourself fall behind on your student loans. The government can garnish your earnings until you pay what you owe from student loans. Make sure to keep up or get help to pay your loans to avoid garnishment.
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