Some Texas Students Could Have Their Wages Garnished

Some students in Texas could start seeing less money in their paychecks as the federal government starts aggressively collecting student loan payments.

Prior to 2020, federal wage garnishments were rising for students who fell behind in their payments. They were suspended during the pandemic but now they're back.

Like everything is said to be in Texas, the student loan debt is big with 3.9 million Texans owing about $131.9 billion in federal student loans. Those who have fallen behind in their payments may soon see it taken from their pay before they even get their check.

 How Do Garnishments Work?

A federal student loan goes into default after nine months with no payment. Once that happens, the entire loan becomes due immediately, and the government has the legal right to ask your employer to withhold part of your paycheck. - startelegram

The garnishments can be up to 15% of a persons paycheck. Those affected by this will receive a letter, (they start going out today), but they only have 30 days to react.

What Can I Do?

If you get one of those letters, ACT ON IT. It's the only chance you'll get to fix things before the feds hit your paycheck. You can dispute the amount, ask for a hearing, request documentation or start your own payment plan to avoid losing the money before you even get it or maybe lose a smaller amount.

Will The Government Help?

Kinda. Uncle Sam offers 2 plans to help you avoid a garnishment:

1. Loan Rehabilitation - You set up a payment plan to get your account current.
2. Loan consolidation - A new loan absorbs your current one making you "current".

READ MORE: Tips To Avoid Loan Forgiveness Fraud

Either of these will prevent wage garnishments. If you're unsure of your loan status, visit studentaid.gov to see where you stand and what options you have.

Before anything is taken out, the Department of Education must send a written notice at least 30 days in advance.