Help With Student Loan Garnishment

Student loan lenders can garnish your wages or tax returns to force repayment. This is a difficult situation to deal with, but it doesn’t have to be permanent. You can take action in order to reduce or even eliminate the garnishment on your paychecks. Here’s what you need to know:

Help With Student Loan Garnishment

Student loan garnishment is a difficult but sometimes necessary way to resolve defaulted student loans.

Student loan garnishment is a last resort for collecting on defaulted student loans. It is a very inconvenient and can be financially devastating for borrowers. However, it’s important to understand that the garnishment process is your best option if you want to avoid drastic credit consequences like wage garnishment or property seizure.

The first step in the student loan garnishment process is when your lender sends you notice about an upcoming court judgment that will allow them to collect on your student loan despite its current status as delinquent or in default. The notice should include information about how much money they’re attempting to collect from you and what they’re doing with it (for example, paying off other creditors).

After receiving this notice, you’ll have 30 days before the court issues its final decision on whether to issue an order against you or not. In this period of time between receiving notice and having a hearing date set up, there are certain actions that can be taken by both parties (borrower vs creditor) so that one doesn’t get caught off guard by what might happen next:

Fortunately, there are multiple ways you can have garnishment reversed or reduced.

Fortunately, there are multiple ways you can have garnishment reversed or reduced.

  • You can get help from a student loan relief company. There are private companies that specialize in debt relief and will offer you their services for a fee. They may be able to negotiate with your creditors on your behalf and convince them to settle for less than what is owed or make other alternative arrangements that allow you to pay off the debt at a lower rate of interest and/or over a longer period of time.
  • You can also get help from a student loan lawyer. If the issue is too complicated for one of these firms, then you should seek out an attorney who specializes in this area of law; however, keep in mind that attorneys generally charge more money than companies do because they have more experience working within this field (and even though they’ll likely be worth it).
  • Another option is negotiating directly with the loan servicing company yourself if possible—this means speaking directly with whoever manages all payments made by your employer or other sources so that they might be willing to reduce payments based on how much money was taken out each month (which could happen if there were several garnishments).

To do this, you’ll need to enroll in a loan rehabilitation program.

To do this, you’ll need to enroll in a loan rehabilitation program. This is done by contacting your lender and requesting that your loans be rehabilitated. Your lender will ask you to agree to pay the loan back in full, including all accrued interest, as well as make nine consecutive, on-time payments within a 10-year period. You can’t use the same payment plan for more than one student loan at a time; if you have multiple student loans with different lenders that aren’t being paid off fast enough under the standard repayment plan but also cannot afford to make all nine payments within 10 years (or longer), contact them about setting up an Income-Driven Repayment Plan or refinancing so that they can repay at least part of their debt faster without having any additional penalties or fees added onto their account balance due dates.

You can only have a single successful loan rehabilitation per student loan.

If you have more than one student loan, you can only have one rehabilitation per student loan. If you are successful in your first rehabilitation, the remaining debt may not be eligible for a second rehabilitation. However, if you have multiple loans and are unsuccessful with one or more of them due to a hardship situation like unemployment or underemployment (see below), then those loans will become eligible again after two years from their delinquency date.

Alternatively, you may be able to negotiate an income-driven repayment plan.

You may be able to lower your monthly payment on federal student loans by entering into an Income-Driven Repayment Plan. These plans are available for all federal student loans, including both subsidized and unsubsidized Stafford Loans, PLUS loans and Perkins Loans.

Generally speaking, income-driven repayment plans spread out your monthly payments over a longer period of time than the standard 10-year repayment plan. The idea is that this will allow you to pay less each month (or more in some cases) but still have enough money left over for other important expenses such as rent or food.

For example, suppose you have $100,000 in student loan debt at 8% interest per year: under our standard 10-year plan, we would expect you to pay back $160K over that time period ($100K x 1.08). However if instead we entered into an income-driven repayment plan with monthly payments set at 10% of discretionary income—a common threshold used by most programs—you would only need to pay back $80K over 20 years ($40K x 2). This means that even though we’re paying less each month with IDR compared to our standard plan (by about 30%!), total costs are significantly smaller because they’re spread out over twice as long (i.e., they don’t increase linearly).

Other options include filing for bankruptcy or negotiating a lump sum payoff agreement.

If you are facing garnishment, it may be worth considering filing for bankruptcy. Bankruptcy is a legal process where you can get rid of some of your debt, but it can have negative consequences. To be eligible for bankruptcy protection, you need to have less than $250,000 in assets and less than $1,000 in monthly income. If these requirements apply to you and if there is no other way out of your student loan debt problem (e.g., Income Based Repayment), then bankruptcy should be considered as an option.

If filing for Chapter 13 bankruptcy seems like the right choice, contact a lawyer who specializes in helping people with student loan problems file this type of case.

You can make your student loan burden easier to handle if you follow these steps

If you have student loans, you know how difficult it can be to repay them. The good news is that there are multiple ways to reduce or eliminate that burden.

If your student loan debt is so high that you fear being unable to pay it back, consider:

  • Student Loan Rehabilitation
  • Income-Driven Repayment Plans
  • Filing for Bankruptcy
  • Lump Sum Payout Agreements (LSPOs)


If you’re struggling to find a way to pay your student loans, we can help. Our team is here 24/7 and we can connect you with experts who know all about student loan debt.

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