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When most people hear the term garnish, they may think about parsley on the side of a dinner plate. That’s not the garnishment we’re talking about. This garnishment will make you lose your appetite.
Student loan garnishment means that the government takes a chunk of your paycheck or your tax returns. The government then uses that money, your money, to pay down your student loans. Thankfully, this only happens when you are in default. That’s when you fail to make money payments for 9 consecutive months.
At that point, the government goes after your cash and it’s totally legal. How much can they take? Up to 15% of every paycheck and all of your tax refunds. This is definitely something you want to avoid. Luckily, there are proven ways to grind garnishment to a halt. Learn about them at Debt.com.
The government can absolutely garnish your wages or taxes if you have defaulted student loans and you don’t have deferment.
This is why it’s so critical to find solutions if you’re struggling with your federal student debt payments. If you don’t, then the government is 100% within their right to garnish money from your wages or taxes. There can also be a salary offset for federal employees.
