Can a Creditor Garnish Student Loans?

Many students receive loans secured by the federal government to attend college. These loans, typically provided at a low rate of interest, allow the student to attend school and pay the loans back when he receives a job and income after school. In most cases, these loans are protected from garnishment by private creditors. This is because student loans are not a form of income per se, but are a loan that the student must pay back.

Garnishment

To garnish a person's wage, a private creditor must first be awarded financial damages in a court of law. Only after a judge has certified that the debtor owes the private creditor money can the private creditor attempt to garnish the person's wages by petitioning the judge to grant him a motion to do so. Garnishment that a creditor undertakes without the permission of a judge is illegal.

Student Loans

Students loans are not considered a form of income or wages. This money cannot be freely spent on anything the student wishes. Rather, student loans are just that -- money that the student is borrowing from the government to pay for school and that must be repaid later. Because this money does not count as a form of income, like a paycheck, a judge will not authorize its garnishment.

Private Creditors' Restrictions

There are a number of legal restrictions imposed on private creditors that prevent them from garnishing money from certain types of people and from garnishing certain income streams. For example, many low-income people are protected from garnishment, as this action would leave them too poor to support themselves and their dependents. Additionally, most federal benefits cannot be legally garnished by private creditors, although federal agencies may be allowed to take them.

Considerations

Student loans cannot be garnished by government agencies for the same reasons that they cannot be garnished by private creditors. However, in certain instances, such as if the student has violated the terms of his loans, then his loans may not be garnished by the government, but may simply be cut off. He will still be forced to repay the loans he has already taken out and will be forbidden access to additional loans.