Even with a decent paying job after graduating from college, making enough money to cover loan payments can be tricky. It's especially tough when you make little money and have trouble covering bills as it is. You can stop a student loan wage garnishment.
When you fail to pay your federal student loans, though, the government has the ability to garnish up to 15% of your paycheck. We're going to give you some methods to stop student loan wage garnishment in this article.
Hopefully, you can ease some of your financial stress with the tips listed below.
How to Stop Student Loan Wage Garnishment
We're going to give you 5 tips that can certainly reduce the chances that you default on your loans.
When you fail to pay for 90 days, your loans will be delinquent and alerted to major creditors. After 270 days, your loans will be determined defaulted, and the government can then garnish your wages.
Additionally, loans are due in full when delinquent, adding to the stress of the situation.
1. Make Your Payments as Often as Possible
When you get behind, it may seem like a good idea to just let all of your loans slide. It isn't all or nothing, though, and you'll remain in better standing if you just make your payments when you can.
It may be easiest to set up automatic payments so you don't miss multiple payments when they're due.
2. Defer when You Need to
Many lenders allow people to defer their loans for a month at a time. You can even defer for multiple months at a time if you think you'll need to.
In many cases, individuals have a set number of months that they can defer their loans and are able to use those months as needed. All you need to do is make a phone call before the loan is due and ask for a deferment.
3. Look into Income-Driven Plans
You may have the option to adjust your payments to better-suit your ability to pay. Lenders often have income-driven repayment plans that adjust when you send in a pay stub to be reviewed.
That way, you can make payments, however small they may be, and avoid getting defaulted.
4. Consider Consolidation
When you consolidate your loans, you lump all of your loans into a single loan that can be paid at one time. This may be smart if you can consolidate to a lower overall interest rate as well.
You may be given more time to repay or be given more months of deferment if you consolidate.
5. Call Your Lender
When we borrow money from large institutions, it can feel like we're entirely powerless no matter what happens in our individual lives.
There are real human beings that are paid to help you with your finances, though. Calling your servicer and inquiring about your options may be a really enlightening thing.
Every lender is different, so you never know what your options are until you ask.
Need Some Help?
There are circumstances when you can take legal action to help you out of a bad experience with loan collectors. If your wages are being garnished or you're experiencing other serious difficulties, you have options to stop student loan wage garnishment.
Explore our site to learn more about those options and potential ways that you could move forward.