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How can I prevent a wage garnishment for my federal student loans?

So you have received a notice from the Department of Education, or their collection agency, that they intend to garnish your wages to the tune of 15% of your net pay. What do you do? Are there any defenses?  Can you prevent it? In short, yes, there are things you can do to fend it off.

Request a Hearing!

First and foremost, you must request a hearing immediately upon your receipt of the notice.  In doing so, bear in mind that you should raise any and all of the following challenges:

  • Repayment of the loan at garnishment rates would cause financial hardship.  There is a disclosure form that must also be filled out to substantiate this.
  • You were fired or laid off from your last job, and have had your current job for less than a year.
  • You repaid the loan (obvious)
  • It is not your loan
  • You are already in a repayment plan and have been making payments
  • You are currently in a bankruptcy
  • the loan was discharged in bankruptcy
  • the loan was administratively discharged

The first two challenges are the ones that are most applicable.

This notice should be your wake-up call that you need to do something about your loans.  The dogs are barking, and you have to throw them something.

So What Do I Do?

If you live in southern New Jersey, are facing a wage garnishment, and would like to consult with me on preventing it, please feel free to call my office at 856-432-4113 or contact me through this site to schedule an appointment in my Woodbury office to discuss your case.

If you would like more information about student loans, you can dowload my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

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Steven J. Richardson
Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.