taxing paychecks?

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can a finance company tax your pay check for delinquent loans?

2007-02-20 14:43:11 · 2 answers · asked by cntrysuepa 1 in Education & Reference ➔ Financial Aid

2 answers

It's not taxing -- it's call "garnishing your wages" and it's absolutely allowed. When you signed the promissory note for your loans, you agreed to this provision. Moreover, if you have defaulted on a student loan, the government can also take any tax refund that you might be expecting, so it is in your best interest to pay those loans!

2007-02-20 14:51:06 · answer #1 · answered by FinAidGrrl 5 · 0⤊ 0⤋

If they go to court and get a judgement they can garnish your paychecks for that amount. You have to be given notice and have the opportunity to go to court.

2007-02-20 23:04:31 · answer #2 · answered by professorc 7 · 0⤊ 0⤋