Like any other loan or bill, it is vital that you try to keep up with repayments. Student loans are no exception. It is easy to get carried away at university not worrying about paying back your loans but when you get released into the big wide world and have to pay them back, this can surprise a lot of people. Student loan garnishment will occur and you will be forced to pay back your debts whether you like it or not!

So what is student loan garnishment?

A garnishment purely means that a portion of your wages is automatically deducted by the government to pay of your student loans. This obviously only happens if you are failing to pay your repayments. The last thing you would want is to default on the loan and ruin your credit rating permanently, so the first thing you should do is contact your lender and explain your current situation. Don’t try hiding away from them because often a quick phone call can give you some grace and relieve any worries you may be having.

Most lenders are happy to sort out arrangements of repayments to avoid defaulting on the loan. This means they will still get their money back but may have to wait a little longer. This should be your first step if you cannot afford the repayments. If you do default on the loan, try to make nine payments on time and that will remove the default status and fix your credit record. But note that student loan garnishment payments do not count within the 9 payments.

So as you can see, student loan garnishment can be quite serious and you really need to bear this in mind when taking out your loan in the first place. Always try to borrow the minimum you require and no more. You will always have to pay it all back one way or another, so think about the future and not about the now. This should keep you from defaulting on loans and make sure your credit history is good and not bad.