Feds Garnishing Louisiana Wages Beginning This Week

(KMDL-FM) With all the federal government has done to keep inflation low and prices from rising, that's sarcasm by the way, you'd think the folks we elected to serve us in Washington wouldn't want to be sending out wage garnishment notices for hard-working Louisiana residents, but they are. The first of what could be many garnishment notices has already been sent out.

If you're not familiar with wage garnishment, then you've probably been pretty responsible in paying your bills and reconciling your debts. Wage garnishments only happen when a court orders that a person's earnings, including salaries, tips, and commission be withheld by their employer in order to satisfy a debt.

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You won't even see the money that you've earned if your wages have been garnished. As "un-American" as that seems, it is the law of the land. And here comes the staggering part about this particular financial crisis: it is entirely plausible that some 680,000 current or former Louisiana residents could have their wages garnished by their employers over non-payment of a debt.

Why Are More Than 600,000 Louisiana Residents at Risk for Wage Garnishment?

Those who could be subject to having their wages garnished are those Louisiana residents and former Louisiana residents who still owe money for their education. Yes, the federal government is cracking down hard on student loan defaults. And based on data we found online, that would be about 31% of all student loan borrowers who have accounts open across the state.

Here is an even more sobering fact about student loan default: if you miss payments for more than nine months in a row, the entire balance becomes due immediately. So, this could be a serious financial situation for many, with the average student loan debt in Louisiana being about $34,800.

Which Louisiana Schools Have the Most Student Loans in Default?

The institutions where students owe the most money are LSU-Health Sciences Center in New Orleans, LSU at Baton Rouge, Loyola University in New Orleans, Tulane University in New Orleans, and Holy Cross, also in New Orleans.

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Louisiana Tech was number 8 on the most delinquent student loan list, while the University of Louisiana at Lafayette was number ten on the list. We should note that these figures, gathered by College Raptor, a financial aid and education website, were for Louisiana schools only.  The site does offer rankings and details for other states and other schools.

Incidentally, the maximum amount of money that can be garnished from your paycheck is 15%. That rate could be negotiated lower. However, the responsibility for reaching out to negotiate or restructure your payment plan is yours.

How Can You Avoid Wage Garnishment Over Student Loan Debt?

It is possible to avoid having your wages garnished in this situation, but it will require action on your part, and that action should be taken sooner rather than later. According to the Federal Student Aid Website, you should:

* Attempt to negotiate loan repayments no later than 30 days after the initial garnishment notice was sent.

* Request a hearing if you have any objections to the amounts requested or if the garnishment amount would pose undue hardship on you personally or for your family.

The key seems to be communication. So, if you are in default on your student loans or you've received a notice of wage garnishment, the time to act is now. The idea is to get the money paid back and not to put you in bankruptcy, so terms and conditions can usually be negotiated.