We can get your Student Loans out of Default!
The government can absolutely garnish your wages or taxes if you have defaulted student loans and you don’t have deferment.
Therefore, 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.
By law, there is not much wiggle room between being current with your payments and being in default. As soon as you miss a payment by 30 days, a loan becomes delinquent. Then, if your loan payments are monthly, the loan goes into default after 270 days (9 months).
Fact: If your payments are on less than a monthly schedule (e.g. bi-monthly), default occurs after 330 days (11 months).
Once the loan goes into default, the government can start the process for garnishment. They must send you a notice of garnishment or offset 30 days prior. If you don’t get things settled in 30 days, then the garnishment or offset begins.