How to File for Hardship After a Student Loan Wage Garnishment
When you are in default on a student loan, the lender can order a wage garnishment to take part of each of your paychecks and use that to pay your debt. If having your wages garnished would cause you undue financial hardship, you can appeal to stop the garnishment. You should request this appeal when you first receive notice that your wages will be garnished to stop the garnishment before it even begins. If you wait until after the garnishment begins to file hardship, the lender can continue garnishing your wages for up to 60 days or until the appeal is processed.
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Things You'll Need
- 2 most recent pay stubs
- Most recent tax return
- Mortgage or lease agreement showing monthly payment
- All monthly bills
Instructions
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1
Print the "Request for Hearing and Financial Disclosure Statement" forms from the Department of Education website (see Resources).
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Fill out the request for hearing form and check the option on the first page to request a hearing because wage garnishment would cause financial hardship.
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3
Fill out all lines on the "U.S. Department of Education Financial Disclosure Statement" (see resources). Enter zero on any line that does not apply to you.
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4
Make photocopies of documentation to show your financial situation. These documents include your two most recent pay stubs from each job a member of your household works, last year's tax return for each member of your household, a copy of your mortgage or lease agreement and a copy of each bill you received for the most recent month showing the amount due.
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5
Mail both completed forms and all supporting documentation to:
U.S. Department of Education
AWG Hearings Unit
P.O. Box 617547
Chicago, IL 60661-7547
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Tips & Warnings
If your wage garnishment is for a private student loan, contact the court that issued the garnishment to request a hearing to stop the garnishment due to financial hardship.
