Are You at Risk of Wage Garnishment From Student Loans?

📉 Are You at Risk of Wage Garnishment From Student Loans?

Millions of student loan borrowers are facing a major financial threat — wage garnishment.

If you’ve missed payments or lost track of your federal student loans, the government may start taking up to 15% of your paycheck directly from your employer.

This can happen without a court order.

⚠️ Key Updates You Need to Know

  • Federal collections resumed in May 2025 after a long pause

  • Over 3 million borrowers could enter default by August

  • More than 6 million are already behind on payments

  • Wage garnishment can hit your tax refund, paycheck, or even Social Security

“I had a good job, but I didn’t realize I was already in default. Then my check came up short.”
— Tulsa Client, 2024

💸 How Wage Garnishment Works

When a federal student loan defaults (usually after 270 days of nonpayment), the U.S. Department of Education can:

  • Automatically garnish up to 15% of your disposable income

  • Offset your IRS refund and Social Security benefits

  • Send your account to collections, adding more fees and stress

This is all federally authorized and can happen even if state laws would normally protect your income.

❓Why Are So Many High Earners Still Falling Behind?

Even professionals making $60K–$120K are struggling with:

  • Confusing repayment plans

  • Life disruptions like layoffs or medical emergencies

  • Misinformation or lack of communication from loan servicers

You’re not alone, and this isn’t about being irresponsible. It’s about systems — and strategy.

✝️ Biblical Wisdom for a Financial Reset

“Plans fail for lack of counsel, but with many advisers they succeed.”
— Proverbs 15:22

Our financial coaching brings structure, peace, and God-centered stewardship to a chaotic situation.

🛠️ What Lionhood Financial Coaching Can Do for You

  • Review your current loan status

  • Help you apply for consolidation or rehabilitation

  • Navigate income-driven repayment plans

  • Stop garnishment or recover from its effects

  • Build a sustainable budget with faith-integrated tools

✅ Take These Steps Right Now

  1. Go to studentaid.gov and check your loan status

  2. Contact your loan servicer to discuss IDR or rehabilitation

  3. Book your free student loan strategy session with Lionhood

We’ll help you map out the best next steps before garnishment steals your peace.

👉 Book Your Session Here

📣 Client Testimony

“They helped me create a plan that gave me control again. I feel hopeful — and protected.”
— Young Professional, Remote Client

🧭 Verse of the Week

“Commit your work to the Lord, and your plans will be established.”
— Proverbs 16:3

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