Student Loan Creditors Can Garnish Your Money

The article explores whether student loans can garnish a person's bank account. It explains that while private lenders typically need to sue borrowers and obtain a court judgment to garnish funds, the situation is different for federal student loans. The U.S. Department of Education has the power to garnish wages and seize tax refunds without a court order. Moreover, they can also access a borrower's bank account under certain circumstances, known as administrative garnishment. This process allows the government to collect overdue federal student loan payments directly from a debtor's account, making it important for borrowers to stay current on their loan payments.

Read the Full Article

The dedicated team at Newsletter Station has provided this summary for your convenience.
Unlock the Power of Email Marketing
Harness the potential of email marketing with Newsletter Station. Reach your target audience, drive conversions, and achieve your business goals.