Wage Garnishment Resumes for Millions of U.S. Student Loan Borrowers

After 270 days without payment, defaulted student loans can trigger wage garnishment of up to 15% of disposable income.

Summary

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Terms & Concepts
  • Wage Garnishment: A legal process where an employer withholds a portion of a debtor's earnings to repay a debt, often mandated by court or government order.
  • Default (Student Loans): Failure to make payments on a student loan for a set period, triggering legal consequences such as wage garnishment.