When you owe money on a student loan, the lender can take action to recover that money. This is known as a student loan garnishment. If you don’t pay your student loans, the lender may take action to recover the money it is owed. That action may come in the form of garnishing your wages.
Unfortunately, student loans are very stringent when it comes to repaying the money that was given to you. If you do not meet the requirements set by your lender, they may garnish your wages as a last resort measure. Read on to learn whether student loans can be garnished and, if so, under what circumstances.
Can student loans garnish your wages?
If you are not careful, student loan debt can become your worst nightmare. This is because a student loan is taken out of your paycheck, and the interest accumulates on your student loans, increasing the amount you owe. If you are not making payments on time, this can lead to a lot of stress and anxiety.
When it comes to repaying your student loans, you may need more than the repayment plan that the government sets for you to make payments on time. You may find yourself in a position where your lender takes action to garnish your wages.
Garnishment occurs when a lender issues a writ of execution or levy against an individual’s wages or assets. The writ of execution states that part of the individual’s wages will be taken from them and given to the lender as payment for their loan. For example, if you do not make your student loan payments on time, you may find yourself in a situation where your employer is ordered to withhold a percentage of your wages and give them to the lender.
This is a stressful situation that may cause you to have a hard time concentrating on your work. If you are worried that your debt collection efforts may lead to student loan garnishment of your wages, you should speak with an experienced student loan lawyer to discuss your options.
It is important to note that the lender only garners your wages or takes out a wage assignment if you default on your student loans. If you are current on your payments, the lender will not act against you.
Contact a Student Loan Attorney
If you are in this situation, you should speak with a Michigan student loan lawyer at Moran Law as soon as possible. The sooner you schedule a consultation, the better the chances of having your wages garnished, significantly reduced, or eliminated. We can help you stop wage garnishment.
