This is where the government takes a limited portion of the wages of the student loan debtor who has defaulted on the repayment plan.This can be up to 15 percent of the disposable income.Default occurs when you have not made payments on your student loan according to the terms of your promissory note.

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This is the popular method that is used in collecting defaulted loan.

Actually, the Department of Education collects hundreds of millions annually with this method.

In fact with tuition prices skyrocketing, Private student loans are borrowed money used to pay for the costs of college tuition and other college expenses that must be repaid, unlike a scholarship or grant.

Students borrow money at an interest rate from private financial institutions such as banks and credit unions.

Please contact your loan holder, servicer, or TG immediately to learn about your options and avoid the consequences of default.

Here are some answers to frequently asked questions.) is the nation's first and largest nonprofit dedicated to improving people's financial well-being.NFCC members help millions of consumers like you through community-based offices located in all 50 states and Puerto Rico. The government actually has a very powerful tool that it uses on those borrowers who do not make student loan payments.The tools that are used by the government include…IRS can intercept any entitled income tax refunds until you have completed repaying your student loan.When students receive a federally funded student loan that does not sufficiently cover the costs of tuition and other expenses, they can use their private student loans to supplement or replace federally guaranteed loans such as Stafford loans, Perkins loans, and PLUS loans.