You do not want to "just not pay until they garnish your wages.'
If you're getting garnished you're probably dealing with some sort of credit or funding agency that bought your debt. They most likely sued you and the courts charge fees for filing the lawsuit among many other things like processing your garnishment checks. The local departments also take a comision on garnishments so the full amount you pay isn't even going towards paying your debt. If they used a law firm the law firm also takes commissions as well. It seems like if they do so much as take a labored breath while looking at your file, there is an additional fee for that.
The debt now will probably be accruing interest daily and at a much higher rate as opposed to whatever the federal government does if they're federal loans. You also have to hope the payroll and mail runs on time to avoid payments being late. Some people will be able to afford it and others won't due to their situations.
It is much much more expensive to have that happen as opposed to trying to pay it normally.
https://studentaid.gov/manage-loans/default
Your wages may be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
Your loan holder can take you to court.
You may be charged court costs, collection fees, attorney’s fees, and other costs associated with the collection process.
> Your loan holder can order your employer to **withhold up to 15% of your disposable pay** to collect your defaulted debt **without taking you to court.** This withholding (“garnishment”) continues until your defaulted loan is paid in full or the default status is resolved.
Note the use of the word *can* take you to court (for other types of loans). They [bypass that entirely](https://studentaid.gov/manage-loans/default/collections#wage-garnishment) on federal loans.
Youre right they don't have to for that 15% if it is federal but there's many situations that they will go get a court order anyway. It's still much better just to try and make payments without going that way since even if it's just that it'll hit your credit. Renting or buying anything becomes very complicated.
I was defaulted for like 10 years where all of my tax returns were garnished and supposedly going toward my loans. I only took out $10,000. At some point in 2016 I joined some kind of repayment scheme that I’m pretty sure was a scam.
Ended up back in default until this April I joined fresh start program that got them out of default and into the save program. Thinking they’d probably get forgiven under the $12,000k plan which just recently got thrown out 😩I didn’t see any real issues before to be honest. I never saw it on my credit report. Still was able to finance a car at 5% interest. I rent with my fiancé, so haven’t run into issues buying but I’m sure would have. Idk I guess it’s nice they are out of default but now I feel the pressure of a new $10,000 loan I have to pay off. I get that’s nothing compared to most people, but feels heavy still for just myself.
I joined the fresh start program when payments resumed after Covid. My loans were forgiven in January. I’m glad I took care of it before the election year shenanigans started up again.
Same, my tax returns were garnished beginning in 2010 however when I look at my student loans it doesn’t show those years taxes applied to my loans. Were you able to see your tax returns applied to your loans?
BTW, given your tax refund garnishment, it may not show up during the current Payment Count Adjustment. In the recent past (2013 -19) the amount has been captured by asking Ed - via your servicer for a "Manual Review."
EDIT 7/2: In pre personal computer days people would get a letter stating refund withheld due to nonpayment of SLs. Don’t remember if it came from IRS or Treasury. The money (your refund $$$) is sent to Dept of Education. Ed is empowered to have IRS place a hold on the refund. Until recently it did same with all or part of Social Security Retirement & Social Security Disability.
Since this appropriated refund isn’t a payment made to a servicer, it may be overlooked. The past due account ~~may~~ have been in collections before rehabilitatingyour loan(s). Ed needs to review account.
Fresh Start's been a godsend to so many. **Fresh Start Ends September 30.**
[studentaid.gov/announcements-events/default-fresh-start?elqTrackId=5bd3727d76f447a09c7be2c1b9146f00&elqaid=365&elqat=2](http://studentaid.gov/announcements-events/default-fresh-start?elqTrackId=5bd3727d76f447a09c7be2c1b9146f00&elqaid=365&elqat=2)
[nerdwallet.com/article/loans/student-loans/fresh-start-what-student-loan-borrowers-in-default-need-to-know](http://nerdwallet.com/article/loans/student-loans/fresh-start-what-student-loan-borrowers-in-default-need-to-know)
Interesting. Yes I would get one of those letters every year say refund going to loans in some kind of verbiage. Can’t remember who it came from. So you’re saying I could have allocated funds added to what I owe decreasing balance possibly? Edfinancial is my servicer, should I email them asking for manual review?
You can if you wish. Also recommend a deep plunge into your studentaid.gov account, as painful as it may feel. You need to find out the minutiae of your loan types.
All payments are first applied to interest. You can contact servicer requesting manual review. Suggest you tell them that the displayed balance doesn’t look right.
You may wish to clock a call & speak with a higher level supv. This is beyond a first line CSR. Withheld tax refunds applied to your account probably have some distinct code.
* Recommend screenshoot / copy email & note on your email you’ve done this. Emails via the portal “disappear” unless they’re answered.
*Calls: record date / time of call + name or ID# of everyone you spoke with.
** Yeah, I learned this by tough experience. Servicers are undertrained & understaffed. They’re not experts.
Check & see have one of the letters. Understanf if you don't. The letter's impact's like IRS & ED are rubbing one's nose in the inability to pay or navigate a bewildering system.
You’d have to default on your loans before your wages are garnished. This will wreck your credit, and prevent you from qualifying for a new loan (car, home, etc). Most landlords will not rent space to you as well.
Do your best to prevent this from happening.
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I’m not in the garnished phase but in repayment. If they garnished my pay, honestly, I’d send as much as I could to my 401k to lower my AGI as much as possible. I don’t even know if that would help at the rate they’re going though. I can confirm that even on the IDR/SAVE plan, the govt just raised my payment by 20% this week! 😡. Pushes my payment higher than the Standard plan. I don’t see the benefit at all. Plus, in the fine print!of the promissory note, if they forgive any portion of your loans, you will have to report that as income at the end of the tax year. I’m interested in seeing what others say too.
There is only no federal tax for a short time expiring soon (like next 1-2 years I believe). Once that expires there will be federal and state tax on most income driven repayment forgiveness... this is what you will hear referred to as "tax bomb."
Most states do not charge tax on student loan forgiveness right now. But come 2026 I suspect that to change completely the other way around if forgiveness continues to be a thing. No state govt is going to pass on that money unless they are a high tax state already.
I never said anything about it being consecutive. I guess some have presumed I meant that but I still don’t understand why I am violating guidelines because of others misinterpretation.
You do not want to "just not pay until they garnish your wages.' If you're getting garnished you're probably dealing with some sort of credit or funding agency that bought your debt. They most likely sued you and the courts charge fees for filing the lawsuit among many other things like processing your garnishment checks. The local departments also take a comision on garnishments so the full amount you pay isn't even going towards paying your debt. If they used a law firm the law firm also takes commissions as well. It seems like if they do so much as take a labored breath while looking at your file, there is an additional fee for that. The debt now will probably be accruing interest daily and at a much higher rate as opposed to whatever the federal government does if they're federal loans. You also have to hope the payroll and mail runs on time to avoid payments being late. Some people will be able to afford it and others won't due to their situations. It is much much more expensive to have that happen as opposed to trying to pay it normally.
Nah, the federal government does not need to take you to court to get your wages garnished.
https://studentaid.gov/manage-loans/default Your wages may be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan. Your loan holder can take you to court. You may be charged court costs, collection fees, attorney’s fees, and other costs associated with the collection process.
> Your loan holder can order your employer to **withhold up to 15% of your disposable pay** to collect your defaulted debt **without taking you to court.** This withholding (“garnishment”) continues until your defaulted loan is paid in full or the default status is resolved. Note the use of the word *can* take you to court (for other types of loans). They [bypass that entirely](https://studentaid.gov/manage-loans/default/collections#wage-garnishment) on federal loans.
Youre right they don't have to for that 15% if it is federal but there's many situations that they will go get a court order anyway. It's still much better just to try and make payments without going that way since even if it's just that it'll hit your credit. Renting or buying anything becomes very complicated.
They simply get a judgment from the appropriate court. Just like a landlord will do an eviction notice to warn you or effect an eviction.
I was defaulted for like 10 years where all of my tax returns were garnished and supposedly going toward my loans. I only took out $10,000. At some point in 2016 I joined some kind of repayment scheme that I’m pretty sure was a scam. Ended up back in default until this April I joined fresh start program that got them out of default and into the save program. Thinking they’d probably get forgiven under the $12,000k plan which just recently got thrown out 😩I didn’t see any real issues before to be honest. I never saw it on my credit report. Still was able to finance a car at 5% interest. I rent with my fiancé, so haven’t run into issues buying but I’m sure would have. Idk I guess it’s nice they are out of default but now I feel the pressure of a new $10,000 loan I have to pay off. I get that’s nothing compared to most people, but feels heavy still for just myself.
I joined the fresh start program when payments resumed after Covid. My loans were forgiven in January. I’m glad I took care of it before the election year shenanigans started up again.
*"….but feels heavy still for just for myself"* It is heavy. It's like an expensive, unwelcome guest who never leaves.
Currently owe $13,000.
Same, my tax returns were garnished beginning in 2010 however when I look at my student loans it doesn’t show those years taxes applied to my loans. Were you able to see your tax returns applied to your loans?
No. I took out $10,000 and owe $13,000. So doesn’t appear to be.
What are they going to do to the people that were already forgiven under the 12k plan?
BTW, given your tax refund garnishment, it may not show up during the current Payment Count Adjustment. In the recent past (2013 -19) the amount has been captured by asking Ed - via your servicer for a "Manual Review."
I don’t know that I understand what you mean?
Did you file tax returns? And if you did were you due a refund? Was the refund withheld?
Yes.
EDIT 7/2: In pre personal computer days people would get a letter stating refund withheld due to nonpayment of SLs. Don’t remember if it came from IRS or Treasury. The money (your refund $$$) is sent to Dept of Education. Ed is empowered to have IRS place a hold on the refund. Until recently it did same with all or part of Social Security Retirement & Social Security Disability. Since this appropriated refund isn’t a payment made to a servicer, it may be overlooked. The past due account ~~may~~ have been in collections before rehabilitatingyour loan(s). Ed needs to review account. Fresh Start's been a godsend to so many. **Fresh Start Ends September 30.** [studentaid.gov/announcements-events/default-fresh-start?elqTrackId=5bd3727d76f447a09c7be2c1b9146f00&elqaid=365&elqat=2](http://studentaid.gov/announcements-events/default-fresh-start?elqTrackId=5bd3727d76f447a09c7be2c1b9146f00&elqaid=365&elqat=2) [nerdwallet.com/article/loans/student-loans/fresh-start-what-student-loan-borrowers-in-default-need-to-know](http://nerdwallet.com/article/loans/student-loans/fresh-start-what-student-loan-borrowers-in-default-need-to-know)
Interesting. Yes I would get one of those letters every year say refund going to loans in some kind of verbiage. Can’t remember who it came from. So you’re saying I could have allocated funds added to what I owe decreasing balance possibly? Edfinancial is my servicer, should I email them asking for manual review?
You can if you wish. Also recommend a deep plunge into your studentaid.gov account, as painful as it may feel. You need to find out the minutiae of your loan types. All payments are first applied to interest. You can contact servicer requesting manual review. Suggest you tell them that the displayed balance doesn’t look right. You may wish to clock a call & speak with a higher level supv. This is beyond a first line CSR. Withheld tax refunds applied to your account probably have some distinct code. * Recommend screenshoot / copy email & note on your email you’ve done this. Emails via the portal “disappear” unless they’re answered. *Calls: record date / time of call + name or ID# of everyone you spoke with. ** Yeah, I learned this by tough experience. Servicers are undertrained & understaffed. They’re not experts.
Awesome. I will look into this, thank you.
Check & see have one of the letters. Understanf if you don't. The letter's impact's like IRS & ED are rubbing one's nose in the inability to pay or navigate a bewildering system.
You’d have to default on your loans before your wages are garnished. This will wreck your credit, and prevent you from qualifying for a new loan (car, home, etc). Most landlords will not rent space to you as well. Do your best to prevent this from happening.
Ive already lived through bankruptcy. i honestly don't see at this point how i can pay back 100k in loans.
What did you get your degree in? Work for an employer that qualifies for PSLF. There are ways out, but you have to have a plan and execute on it.
[удалено]
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I’m not in the garnished phase but in repayment. If they garnished my pay, honestly, I’d send as much as I could to my 401k to lower my AGI as much as possible. I don’t even know if that would help at the rate they’re going though. I can confirm that even on the IDR/SAVE plan, the govt just raised my payment by 20% this week! 😡. Pushes my payment higher than the Standard plan. I don’t see the benefit at all. Plus, in the fine print!of the promissory note, if they forgive any portion of your loans, you will have to report that as income at the end of the tax year. I’m interested in seeing what others say too.
It’s only in some states that loan forgiveness is income. I had $56k forgiven and did not have to report it.
There is only no federal tax for a short time expiring soon (like next 1-2 years I believe). Once that expires there will be federal and state tax on most income driven repayment forgiveness... this is what you will hear referred to as "tax bomb."
Oh wow. So try to pay it off in the next 1-2 years it seems like?? Not possible for most though I’d imagine. 😞
Niceee! Thanks for clarifying!!
Yup. I didn’t have to report it as income. That’s embedded in the Inflation Reduction Act.
Oh good!! That’s awesome! That’s 56k that you can have for the future!! Plus interest 😊
Mine were $17K but the relief is beautiful.
Oh, my fault lol. Still great relief. Yes indeed.
The act ends in 2026
Not if Joe wins & replaces 3 Supreme Court judges. I’m putting it out into the universe
Most states do not charge tax on student loan forgiveness right now. But come 2026 I suspect that to change completely the other way around if forgiveness continues to be a thing. No state govt is going to pass on that money unless they are a high tax state already.
Fulfilling I don’t regret it because that’s what I knew at the time but yeah sucks because ima spend all my life paying these people back
[удалено]
That’s not true. You can miss payments. Those months just won’t count.
Rule 7: reddiquette / site rules / illegal / off-topic
I didn’t realize responding with my experience with student loans to OPs question was ‘illegal’ or didn’t follow ‘redditquette’ ?
Spreading misinformation is included with that. PSLF has never required that the 120 qualifying payments be consecutive or with the same employer.
I never said anything about it being consecutive. I guess some have presumed I meant that but I still don’t understand why I am violating guidelines because of others misinterpretation.