Nes administration wage garnishment for student loan--Texas

[Loandebt84]

Can NES garnish wages for a past student loan? They sent a written letter stating they are if there is no response by Sept 8th. However, I was just fired from the employer they have listed to garish from. How serious is this and what are my options?

 

[quincy]

Yes. Wages can be garnished to collect on defaulted federal student loans.

But your wages cannot be garnished if you are unemployed and have no wages.

Following is a link to information on student loans and what happens when you default on the loans.

Student Loans and Collections: https://studentaid.ed.gov/sa/repay-loans/default/collections

 

[LdiJ]

Yes. Wages can be garnished to collect on defaulted federal student loans.

But your wages cannot be garnished if you are unemployed and have no wages.

Following is a link to information on student loans and what happens when you default on the loans.

Student Loans and Collections: https://studentaid.ed.gov/sa/repay-loans/default/collections

I thought that wages in TX could not be garnished? Or, am I remembering wrong?

 

[PayrollHRGuy]

I thought that wages in TX could not be garnished? Or, am I remembering wrong?

You are remembering correctly but there may be an exception for Federally secured student loans. That said how do you know TX is involved?

 

[LdiJ]

You are remembering correctly but there may be an exception for Federally secured student loans. That said how do you know TX is involved?

Look at the title to the thread.

 

[PayrollHRGuy]

Look at the title to the thread.

I see it now. And there is a student loan exception in Texas.

 

[quincy]

Information is in the link I provided.

There are exceptions to the Texas law that prevents wage garnishment in Texas. One exception is for collections on defaulted federal student loans.