If my student loans have fell into default, how many years do I have before the Dept of Education collects my taxes for repayment?

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What can I do to avoid this?

Scott Spann, Financial Advisor

@ScottSpann • 02/05/16 This answer was first published on 02/05/16. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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When student loans are in default, that means that the entire balance due on the loans plus interest is due immediately. This isn't a matter of years before a wage garnishment of up to 15% of disposable income can be issued, it is potentially a matter of days or weeks.

In order to avoid wage garnishment, you should take the following actions:

Contact your loan servicer immediately
Understand your options by visiting DOE website
Create a plan to make consistent, on-time payments on your student loans.
Change your repayment plan to an Income Driven Plan.

You still have options if you have defaulted on your student loans. These include repayment, loan rehabilitation, and loan consolidation. The biggest thing to do is to take action!

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