After years of working with student loan borrowers, I can safely say that one of my clients’ biggest fears is that lenders will garnish their wages – seizing money directly from their paychecks. This is particularly troubling for folks who are living paycheck to paycheck. Wage garnishment can represent a very real financial danger.
Is this a legitimate fear? Yes. Student loan wage garnishment can and does happen, all the time. But as with so many issues when it comes to student loan debt, it’s a bit more complicated than just a simple “yes” or “no” answer. A lender’s ability to garnish wages – and a borrower’s rights to limit or stop it – really depend on the type of student loan, its status, and the intersection of federal and state law.Read More