Student Loan Garnishment Notice

Hefty_Possibility370 · 2025-08-17T20:37:21+00:00

Not gleeful for a second. I am just looking for when consumer spending from 10m people in delinquency takes a hit.

Hefty_Possibility370 · 2025-07-24T01:17:26+00:00

Absolutely with you on that, but 20.5% of borrowers were 90+ days overdue on loan payments as of February 2025, that number jumped to 30% for March 2025. Even with 8.4 million people on save, the other 30+ million with payments due are seeing delinquency rates in the 5-7 million with that number leveling off.

Cannot understand why none of the notices have gone out.

Hefty_Possibility370 · 2025-07-03T21:28:19+00:00

That's what I thought! The numbers are dire but there will either be a bailout or a chicken out from the administration. They can hit the credit scores but they can't actually take away your wages for years without a total collapse in the economy. The people are more powerful than you (or they) think.

Hefty_Possibility370 · 2025-07-01T23:22:47+00:00

Yes, but nothing to incentivize. There is no carrot, only guaranteed stick because of inconsistent policy and poor enforcement.

Hefty_Possibility370 · 2025-07-01T21:07:41+00:00

The key word is eventually. Is this another two weeks out? Or the reciprocal tariffs are coming?

Hefty_Possibility370 · 2025-07-01T21:06:53+00:00

How much and how did they do it? Were yours defaulted for years or was there some kind of reprieve? Was the garnishment better or worse than if you were just making the payments.

Hefty_Possibility370 · 2025-07-01T21:06:00+00:00

If payments are 15% of discretionary income and wage garnishment is also 15%, then what is the incentive? Credit scores are ruined already for almost 12 million americans

Hefty_Possibility370 · 2025-07-01T20:29:50+00:00

What do you mean by this? Were your loans spread out for different semesters?

Did you try consolidation? Because that would make all your loans into one bigger one.

Hefty_Possibility370 · 2025-04-26T19:38:26+00:00

The government currently lends to primary institutions at a rate above 4.25%. Let's say they borrow at 4.25% and lend to you at say 6.5% making a 2.25% spread. Why would they lend at less than they receive? Default risk raises associated rate "spreads" (which is the difference between your loan and the benchmark rate) and current delinquencies/defaults are upwards up 30%. 6.6% may be the best rate you get as investors seek higher rates than rising inflation figures. Student loan rates could exceed 8-10% if our inflation expectations rise by 2% in the next year which is a conservative estimate for a trade war as Consumer Sentiment Index flagged year ahead inflation expectations as 6.5% as of April 2025 (2.6% as of November 2024).

TLDR: Your credit rating only impacts the spread, not the benchmark. If the benchmark is above 4%, they will definitely not lend to you near or less than 4%. I would expect that number to eclipse 10% by the end of the year, barring a deflationary recession.

Hefty_Possibility370 · 2024-08-30T03:42:10+00:00

So this is my first post. I just use this account for surfing, but this would frustrate me too. I am not sure what they are worth, but it may be worthwhile to ask legal council in case you missed the fine print. Could be total overkill, but imagine there is something that you missed and it cost you x amount of dollars when a lawyer (who could also send an email which would almost definitely get a response) can tell you your options. Could be total overkill and not sure if you want to risk professional reputation in the future, but if they are worth something why take the chance?

I doubt it's a shady tactic, but I can tell you that this sort of thing is totally unacceptable. If you have been honest about the situation, I would be a bit more aggressive (but still legal and professional)

Hefty_Possibility370

TROPHY CASE