January 28, 2022

College

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Q: How to stop a student loan garnishment after it starts?

11 min read

In this video, you’ll learn how to stop a student loan wage garnishment after it starts.

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The first step in stopping a student loan wage garnishment is identifying whether you’re being garnished for a private student loan or federal student loan.

If you’re not sure, the easiest way to figure this out is to recall whether or not you’ve been sued for a student loan. If you’ve been sued for a student loan, the loan is most likely a private student loan. The Department of Education rarely sues for federal student loans.

If you haven’t been sued, then the garnishment is for a federal student loan. The government (and it’s collection agencies) can garnish your wages for defaulted federal student loans without suing you. This is because they have administrative wage garnishment powers.

Once you know whether your loans are federal or private, we can turn to your options to stop the garnishment.

For private student loans, you may be able to stop a wage garnishment by negotiating a settlement with the judgment holder or by filing bankruptcy. Yes, bankruptcy won’t automatically get rid of your student loan debt, but it will temporarily stop the garnishment. To stop the garnishment completely, you’ll likely need to file an adversary proceeding asking the court to discharge your student loans as an undue hardship.

For federal student loans, you may be able to stop the garnishment by entering into the loan rehabilitation program. That program requires you make 5 voluntary monthly payments to stop the wage garnishment. This means you’ll be getting garnished while making the monthly payments before the garnishment will be released.

If you can’t afford to keep getting garnished, bankruptcy may also be an option.

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Additional Resources:

👉 Work with me: http://tateesq.com/free-talk

How to stop a student loan garnishment after it starts ►
https://tateesq.com/default/money/after-garnishment-starts/

Guide to the student loan rehabilitation program ►
https://tateesq.com/default/rehab/

Guide to filing bankruptcy on student loans►
https://tateesq.com/student-loan-bankruptcy/

Source: #1 Student Loan Lawyer | Tate Law

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