About three years ago, I went to college and applied for a student loan. I got the loan, but I had to stop college that same year and the loan company mailed me and said I had to pay. Well I’ve never had enough income to pay the loans so I just held it off, and eventually forgot about it after all the moving and time passed. Now, I get a letter saying that they will take money out of my paycheck (I owe a little over $3,000) if I don’t pay. I’m still in no position to pay it right now, so they might have to go ahead and take out of my paycheck. How much will they take out? My paychecks are around $250-$300 a week. Also, I don’t know if they will really go through with this, so I need to know an actual or approximate number or percentage and assume that they will. I want to be prepared. Thanks! iiidontknowdoyou: I am not a lowlife. I’ve just been handed a ton of unfortunate situations, most that people wouldn’t care to dream of, so don’t assume that about me. I had to quit school because of all of it and THAT is why I’m in this situation. Not because I am a low life.

Answer:
Yes they will garnish your wages and it hurts no matter what. Generally, the Department of Education will require employers to garnish 10% of your wages, but they have the ability to garnish up to 15% of your wages Know the limits of garnishment. The agency will not deduct the full 15% if your disposable income falls under 30 times the federal minimum wage. So no matter what happens you’ll have at least $154.40 (30 times $5.15) of your wages left over after garnishing. Consider other garnishments. Wage garnishment for child support takes priority over student loans. Understand the max percentage that can be lawfully garnished. The total maximum amount your wages can be garnished is 25% of disposable income. That includes other reasons why your wages might be garnished. I understand you are not a low life. Things are hard for many people now. Your best bet would be to call the bank to set up a payment schedule you can afford. Negotiate the best you can. Tell them of your job hunting efforts to obtain a better paying job or an additional job to eliminate your debt. Many times collection agents are jerks so try to talk to an actual banker from where you obtained the student loan. You will end up paying this loan regardless. Student loans even survive bankruptcy. Remember just keep a positive attitude and you will end up on top.

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