Question 1

Can they take my Social Security for student loans?

Accepted Answer

Part of certain Social Security benefits can be offset for defaulted federal student loans, with limits. Get notice and respond quickly.

Question 2

Does rehabilitation fix my credit?

Accepted Answer

It removes the default notation, though earlier late payments may remain on your report.

Question 3

How much can be garnished for defaulted student loans?

Accepted Answer

For federal loans, up to 15% of your disposable pay through administrative wage garnishment, without a court order, after written notice.

Question 4

How do I get my student loans out of default?

Accepted Answer

Through loan rehabilitation (9 affordable monthly payments in 10 months), consolidation into a Direct Consolidation Loan, or paying in full.

Question 5

Can I stop a student loan wage garnishment?

Accepted Answer

You can request a hearing by the deadline in the notice to object for hardship or errors, or enter an agreement. Rehabilitation can stop it after enough payments.

Question 6

Will they take my tax refund for student loans?

Accepted Answer

Defaulted federal student loans can lead to your federal tax refund being taken through the Treasury Offset Program.

Question 7

What is student loan rehabilitation?

Accepted Answer

A one-time way out of default: make 9 reasonable, affordable monthly payments within 10 months, and the default is removed from your credit history.

Question 8

Can private student lenders garnish my wages?

Accepted Answer

Usually only after suing you and winning a court judgment. Respond to any lawsuit on time.

Common questions: Student loans in default