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Will I get a stimulus check if I defaulted on my student loans?

Published on April 17, 2020 3:04 AM
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If your federal student loans are in default theres good news Youll get a temporary reprieve on wage garnishment and youll also get a stimulus check from Uncle Sam.Under the CARES Act, the government wont withhold the money you owe for defaulted federal student loans out of your payment. It blocks the IRS from garnishing your tax refund for those late loan payments. Also, the government wont ding your wages or withhold social security payments for six months under the relief package.

That will provide breathing room for Americans, who owe more than 1.6 trillion in student loan debt, spread out among about 45 million borrowers. The Department of Education has leaned on wage garnishment to recoup outstanding debt from delinquent borrowers. From July 2015 to September 2018, debt collectors nabbed 2.3 billion in wage garnishments, according to Student Loan Hero. Experts advise taking advantage of the reprieve to plan how youre going to resume payments come October.

"Instead of just enjoying the break from your loans, think of a game plan to ensure you come out of this better for it rather than being stuck in the same situation," says Andrew Pentis, a certified student loan counselor with Student Loan Hero. "Keep up with the news so you know what relief programs you may be eligible for."

Heres what you need to know

Will my wages or stimulus check be garnished The government wont take money you owe for defaulted federal student loans out of a stimulus check.

Behind on child supportIf so, you wont get a stimulus check

Do I qualify for coronavirus reliefStruggling borrowers must contact lenders for forbearance or deferment options

What if my tax refund was already garnished

If your tax refund was withheld because you defaulted on a federal student loan on or after March 13, which was the day President Donald Trump declared a national emergency, it will be returned to you, according to the Department of Education. That also applies to garnished wages and ...