George Kamel The Government Is Coming For Millions of Paychecks
6 snips
Jul 21, 2025 The government is reinstating wage garnishment for millions of borrowers with defaulted federal student loans. Experts discuss the implications and options available, including rehabilitation programs and loan consolidation. Listeners are warned about scams targeting struggling borrowers and are encouraged to explore effective debt management strategies. Emphasizing proactive financial planning, the conversation sheds light on how to avoid pitfalls and regain good standing without fear of severe consequences.
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Government Targets Defaulted Borrowers
- The government is resuming wage garnishment on 5.3 million people with defaulted federal student loans.
- Default occurs after missing payments for about nine months, putting many borrowers at risk now.
Ways to Exit Loan Default
- To get out of default, pay off the balance, rehabilitate with nine payments, or consolidate loans.
- Each method has limits and consequences, so choose wisely and contact the Education Department for help.
How to Challenge Garnishment
- Challenge wage garnishment within 30 days if facing unemployment, bankruptcy, or financial hardship.
- Use the hearing to buy time but prioritize paying off loans to avoid repeated garnishment.
