Three ways student loan borrowers can push back against paycheck garnishment

Student loan borrowers may soon face tougher collection efforts, but there are steps that can help protect their money.

The number of borrowers in default has kept climbing after the federal payment pause.

Reports say Donald Trump’s administration is weighing new measures aimed at borrowers who have fallen behind on their federal student loans.

According to The Washington Sun, the administration is working with the Treasury Department on a possible plan to use more private debt collectors against borrowers in default.

Federal Student Aid said that after the long pause on federal student loan payments, many borrowers' accounts could move into default for the first time, with accounts at least 360 days delinquent.

The agency also said the total number of people in default rose by about 400,000 in one quarter to more than 9.3 million.

The proposed approach could also lead to wage garnishment for borrowers who remain in default and do not pay.

Borrowers in default can take several steps to help shield their finances.

One important move is to stay on top of every payment deadline and open any notices as soon as they arrive.

“Contact the loan holder before collections start, not after,” Nick Avila, founder of San Diego-based United Debt Relief, told Moneywise.

Avila also noted that the government does not need to sue before garnishing wages, unlike a credit card company.

“Most people pay the credit card that calls the most and let the student loan sit,” he said.

“But a credit card company has to sue you before it can touch your wages. A defaulted federal loan doesn’t. That moves it up the list.”

Moneywise also says borrowers can work to get out of default by making nine on-time payments.

“Consolidation is usually faster, but the record of the default stays,” Avila said.

Any enforcement action is not expected to begin until after the midterm elections, according to The Washington Sun.

The Treasury Department also launched a Default Loans Support Center in September to give Americans with defaulted federal student loans a simpler way to understand their options, deal with default, and get back into repayment.