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How much can the student loan people legally take out of your paycheck if you are behind on payments?

Isn't there a percentage limit they can take out so you can still make a living?

Answer Question
 
jl50114

Asked by jl50114 at 12:39 PM on Nov. 22, 2008 in Money & Work

Level 1 (0 Credits)
Answers (4)
  • Im not sure but I was behind and they had taken my tax return. I ended up calling Direct Loans and straightened it all out. You should give them a call. They bought my loan and did my payments according to my income which at the time was hardly anything. I paid like $40 a month instead of hundreds.
    I know in a garnishment that legally they cannot garnish more then 50% of your gross pay though.
    gemgem

    Answer by gemgem at 1:07 PM on Nov. 22, 2008

  • It depends on what state you are in.. I am in arizona , and no one can legally take more than 20% of your earnings. You can take them to court and they can lower the amount to 10% if its needed... But they have to give you enough to live off of.
    tyree08

    Answer by tyree08 at 2:51 PM on Nov. 22, 2008

  • I was under the impression garnishment happened only if you defaulted on them? Here is the government site I found with more info on it, from what I read it says 15%
    http://www.ed.gov/offices/OSFAP/DCS/awg.employers.guide.html
    KnoxvilleDoula

    Answer by KnoxvilleDoula at 4:27 PM on Nov. 22, 2008

  • I never had them take anything out of my paycheck, I told them to keep my tax return. They were happy with that.
    Anonymous

    Answer by Anonymous at 4:48 PM on Nov. 22, 2008

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