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Take Action, Stop Student Loan Garnishments Now

Student Loan GarnishmentsFederal garnishments due to defaulted student loans can make a bad situation worse. These garnishments can leave you making less than minimum wage, which will wreck havoc on your ability to keep up with unrelated debts and bills. A student loan becomes defaulted after 9 months of non-payment, and garnishment can begin immediately.  

Are You Threatened with Student Loan Garnishments?

Federal Law allows the US Department of Education the use of a collection technique called an Administrative Wage Garnishment (AWG). AWG is the involuntary seizure of a person's wages as a means to secure repayment of defaulted Federal Student Loans. The amount garnished can vary but usually starts at a minimum of 15% and can increase to a maximum of 25%, and remains in effect until the defaulted student loan(s) are paid in full.

What Are Your Options?

Once you're in an active wage garnishment for Federal Student Loans, the collection agencies and servicers acting on behalf of the US Department of Education usually only offer 2 options to stop the garnishment, neither of which are very realistic:

  • Pay the outstanding balance of the defaulted student loans in full, or,
  • Make 9-10 on-time voluntary monthly payments in addition to the wage garnishment. The amount of the voluntary payment is usually equal to 1% - 1.29% of your total Federal Student Loan balance.

Obviously, Option 1 isn't feasible. If it was you wouldn't be in this predicament in the first place. Option 2 is just as difficult, if you're barely able to survive with the money already being taken from you, how can you possibly be expected to come up with even MORE money to make the voluntary payment? And this option also comes with this condition: miss any of the monthly voluntary payments, whether it's the third payment or the ninth payment, and you have to start over from the beginning!

You're probably thinking, "Gee, great options...", but fortunately the professionals at Student Consulting Group understand the law and regulations and know there are other solutions to your problem that the collections agencies do not want you to know about. Even better, our solutions to student loan wage garnishments can be completed in as little as 4-8 weeks in most cases, stopping the wage garnishment and getting you payments you can afford!

We work with the following collection agencies, student loan servicers and student loan guaranty agencies:

Loan Servicers
Sallie Mae, Inc.
FedLoan Servicing (PHEAA)
Great Lakes Educational Loan Services

and more...

Loan Guarantor
American Education Services
American Student Assistance
Great Lakes Educational Loan Services
Texas Guaranteed Student Loan Corp.
USA Funds

and more...

Collection Agencies
GC Services
Pioneer Credit Recovery
Van Ru Credit Corporation
Windham Professionals, Inc

and more...

If you are being threatened with student loan wage garnishment or are already suffering with one, The Student Consulting Group can help you! To date we have helped more than 26,000(1) Federal Student Loan borrowers find solutions for their debt, many of them facing or in active student loan wage garnishments!

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