If you’re using a process server to issue a wage garnishment, you may have some hefty competition. Student loan debt is a rising expense many individuals find difficult to pay. Last year, the percentage of defaulted student loans was up nearly 50% from 10 years ago.
If you continued your education after high school, you’re probably aware of the rising costs. The Department of Education has the burden of ensuring that the majority of students can continue their education without financial restrictions. This is why student loans are offered indiscriminately. However, the same department has another burden after your education is paid for – they must repay the money from the taxpayer dollars that fund student loans.
As a last resort, wage garnishment is being used to ensure the funds are repaid. This tool is enforced after about one year of nonpayment. Many individuals experience a garnishment of up to 15% of their earned income, and some even have their wages garnished for up to ten years.
Opposing Viewpoints on Student Loan Repayment
With the country’s growing debt, even more pressure has been placed on the Department of Education to collect more repayment funds. This has resulted in more wage garnishments. In March, there was about a $1 trillion student loan debt total, which is an increase of over 50% since 2007. Additionally, when the department upgraded their computer systems, the number of new borrowers added to the garnishment list dropped significantly.
On the other hand, President Barack Obama released an order to increase the number of borrowers eligible for repayment assistance. It provides loan forgiveness to some and lowers monthly payments for others. Some senators would like to pass a bill which would lower interest rates, while others feel this does not address the larger issue – the increase in tuition is directly related to the federal government’s burden to provide loan assistance.
Make sure you discuss the terms of your garnishment with your process server to ensure that you get your funds returned without lengthy delays.
