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There are millions of students in the United States of America who benefitted from student loan forgiveness in the wake of the COVID-19 pandemic, with former president Joe Biden opting not to put additional financial stress on students who had their time in further education curtailed.
With Donald Trump now in power and Elon Musk doing all he can with the Department of Government Efficiency to cut unnecessary expenditure, there could be a big change coming.
There are close to 10 million students who are delinquent on their loans, and the government could soon begin garnishing their wages in order to recoup the money.
This means that the government could take money directly from people's paychecks before the wages even hit their .
"Your loan holder can tell your employer to withhold up to 15% of your wages to collect your student loan debt without taking you to court," as the National Consumer Law Center's Student Loan Borrower Assistance project notes.
How can you stop wage garnishment?
Naturally, people at risk will be wondering if there is anything they can do to stop the money leaving their wages.
Federal law means that you have to receive a Notice of Intent to Garnish before any money is taken from your paycheck. That warning gives you a chance to appeal or avoid the garnishment.
You typically have 30 days from the date on the notice to request an official hearing. Filing this request on time puts the garnishment on hold until your hearing, as LegalZoom notes. Even if more than 30 days have ed, you should still request a hearing; the wage withholding might begin, but you can still present your case and stop the garnishment if you win the appeal.
The most common defense used in this situation is to say that the garnishment would cause you or your family undue financial hardship.
Other legitimate defenses include proving the debt is not owed - for example, showing that the loan has already been repaid or that you are currently participating in a repayment plan for the loan, as well as situations like filing for bankruptcy or qualifying for a loan discharge.
Other options would include setting up a repayment plan to spread the cost, rehabilitating the loan, or consolidating the loan. The most important piece of advice is to take action once you get the notice rather than wait.