I have defaulted on my student loan. Is it true that some of my paycheck can be withheld?

The answer as to whether your paycheck can be withheld for defaulting on student loans varies based on the type of student loans you have, if you have federal loans for instance, the government can easily do an administrative wage garnishment with just a letter to you. It's basically 15% of your pay, it can be done very quickly. There are ways to fight that. You can ask for a hearing to gain additional time, to clear the default, and deal with it that way. As for private loans, they have to get a judgment first, they have to file a lawsuit, you're served a process. Considerably time will go by before that happens, but they can garnish wages for both private and for federal loans. Categoría

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