An involuntary collection refers to a creditor collecting owed funds by garnishing a borrower’s income. Because the Department of Education has resumed collections on defaulted student loans, federal student loan holders in default who don’t take action will soon be subject to involuntary collections. Outside of making sufficient payments to get your debt back in good standing, your options for avoiding wage garnishment include consolidating your loans and requesting a lower payment from your lender.
Key Takeaways
- Defaulting on your student loans can severely damage your credit score and incur financial penalties, such as wage garnishment.
- Proactive financial management and open communication with lenders can help you avert…
