cation, 1999).
10% of the wages of persons in default may be garnished to satisfy the collection. According to Section 1105 of The National Defense Authorization Act For Fiscal Year 1998, debtors, rather than creditors, to be charged for all costs associated with the processing of a garnishment (Saukko, 1997).
The credit rating of persons in default may suffer, as creditors and collection agents report loan delinquencies to credit bureaus.
Persons in default may be cut off from all manner of federal financial assistance.
When a refund is owed to a married taxpayer but there is a delinquent student loan involved, all or part of the joint filers' overpayment of tax may be used to pay the debt, and obtaining a refund for nondelinquent spouse's share of the overpayment involves a lot of time and red tape (Karl, 1999).
The costs of higher education have risen dr
...