Overhaul to Student Loan Collections Considered
- January 11, 2013
- No comments
Congress will review the idea of implementing the system used in England for collection of student loans. The current system in the United States often involves debt collection agencies hounding the unemployed without offering mention of available payment deferral programs. The system Congress is pondering will be the use of automatic withdrawals from borrower’s paychecks based on their earnings. The withholding would operate like tax withholding or the withholding of child support and alimony by employers when directed by court order. The withholding amount would be at a maximum of 15% of borrower’s disposable income after an allowance for living expenses. Proponents hope this will begin to decrease the $1 trillion student loan debt outstanding and eliminate the use of private debt collectors which add hefty fees to the loan balances leaving those responsible for student loan repayment in deeper debt. If you are behind in student loans or other debt you should seek experienced legal counsel immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.