The U.S. Department of Education is allowed to garnish 15% of your wages if you are in default on a student loan and charge a 25% penalty if you become in default. If you have no wages they may attach tax refunds and social security benefits above 750 per month even if it denies a person food and medical care see James Lockhart v. United States. No court order is required for student loan garnishments. The rule is simple if you are in default, your wages can be garnished and social security can be attached forcing you into a bankruptcy or nursing home to insure that you can survive.
30 days prior to garnishment for a student loan, you must be notified in writing of:
- how much you owe
- how to get a copy of records relating to your student loan
- how to enter into a voluntary repayment schedule, and
- how to request a hearing on the proposed garnishment.
There is no defense of being underage for a student loan wage garnishment Section 484A(b) of the Higher Education Act of 1965, 20 U.S.C. § 1091a(b), bars this claim for Federally-insured loans and most state laws allow underage debts for necessity. The Statute of limitations does not apply to student loan wage garnishments due to 20 U.S.C. § 1091a(a) and Section 484A(a) of the Higher Education Action that provides no statute of limitations bars Federal student loans. Most of the other normal defenses to lawsuits have been cut off to student loan wage garnishments unless you were dismissed or laid of and have returned to work within the past year and the Student loan disability discharge or Bankruptcy. Often people file back to back Chapter 13 and Chapter 7 bankruptcy petitions to avoid student loan wage garnishments and attachments.