Consumer finance expert Clark Howard is urging student loan borrowers in default to act swiftly to prevent potential future wage garnishment. With the federal government recently delaying involuntary collections—including administrative wage garnishment (AWG) and the Treasury Offset Program (TOP)—Howard describes the current pause as a temporary reprieve rather than permanent relief. Borrowers should use this window to establish or resume repayment plans, rehabilitate defaulted loans, or explore consolidation options to avoid aggressive collection measures when they eventually resume.
“This is a temporary stay of execution for millions of borrowers facing default. The government has the power to garnish up to 15% of your disposable wages without a court order, seize tax refunds, and even touch other federal benefits. Don’t wait for the hammer to drop—get on a plan now to come out of … Read more