Scott Spann, Financial Advisor
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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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