2007-01-17 07:40:59 · 12 answers · asked by Gina B 2 in Business & Finance ➔ Taxes ➔ United States
The U.S. Department of Education uses non-judicial defaulted student loan garnishment to collect defaulted student loans, as do the various State and non-profit agencies that guarantee student loans under reinsurance agreements with the U.S. Department of Education. Section 488A of the HEA, as amended in particular by §605 of Pub. L. 102-164, the Emergency Unemployment Compensation Act of 1991 (20 U.S.C 1095a), November 15, 1991, authorized U.S. Department of Education and the guarantors to collect defaulted Federally-financed student loans they hold by nonjudicial "administrative" wage garnishment (AWG) of up to 10 percent of a debtor's disposable pay.
The U.S. Department of Education like other Federal agencies, has also received authority to conduct student loan garnishment of up to 15% of disposable wages 31 U.S.C. Sec.3720D, added by the Debt Collection Improvement Act of 1996, enacted as Sec. 31001 of Pub.L. 104-134, April 26, 1996. Its other provisions mirror those of HEA Sec. 488A almost verbatim, and other comments here on AWG apply to both authorities. Both statutes provide that the garnishor may sue an employer who fails to honor a student loan garnishment order issued under either authority.
In the majority of cases Asgard Financial can stop you from being garnished because of defaulted student loans or if you are being garnished work to stop the garnishment. Don't let defaulted student loans ruin your life.
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2007-01-17 07:54:17 · answer #1 · answered by chole_24 5 · 0⤊ 0⤋
1
2016-10-24 17:09:04 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I can think of two times anyway. They might collect any refund due to you if you were not up to speed, and if it was a bankrupcy and total loss you might be able to re-write some old tax years as an income average and get some money back.
2007-01-17 07:44:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A friend of mine just had this happen to her. It took 8 years for it to happen. I don't know whether they lost her file or what but it took 8 years for her to get a letter in the mail saying if she didn't pay it then they would take her tax credits and GST until the amount was paid.
2007-01-17 07:44:09 · answer #4 · answered by hasgr8boyz 3 · 0⤊ 0⤋
It will effect it on the immediate refund following the default. The government always has first dibs on that money!!!
2007-01-17 07:43:18 · answer #5 · answered by FrazzledMom 3 · 0⤊ 0⤋
I had this problem last year...
I have been out of school for 3 years and they threaten me that if I don't start paying my studen loans, they will take it out of my taxes...
I found out that if I can make arrangements to pay back my loan, they can't do anything...
2007-01-17 07:44:13 · answer #6 · answered by angelic1302 3 · 0⤊ 0⤋
Hey I'm here for the first time. I found this question and I find the replies truly valuable. I hope to give something back and assist others too.
2016-08-23 15:26:41 · answer #7 · answered by ? 4 · 0⤊ 0⤋
i suggest going to this site and filling out the form. it'll help you lower your student loans significantly!
2007-01-18 10:42:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋
As soon as you dont make a payment.
2007-01-17 07:43:48 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Not completely sure about this one
2016-07-28 07:42:17 · answer #10 · answered by ? 4 · 0⤊ 0⤋