Involuntary default happens when your federal student loan is marked as defaulted once it’s more than 120 days overdue, even if your servicer never warned you or stopped sending statements. Once that default hits, the government can legally take your paycheck, tax refund, or Social Security without a court order. The new pause stops wage garnishment and refund seizures, but it doesn’t erase the default or fix your credit. Millions of borrowers are stuck in this gap: reported as defaulted, still
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TikTokliza.the.tax.lady
Involuntary default happens when your federal student loan is marked as defaulted once it’s more than 120 days overdue, even if your servicer never warned you or stopped sending
Liza 🤓 The Tax Lady ️(@liza.the.tax.lady). original sound - Liza 🤓 The Tax Lady ️. Involuntary default happens when your federal student loan is marked as defaulted once it’s more than 120 days overdue, even if your servicer never warned you or stopped sending statements. Once that default hits, the government can legally take your ...
977 views1 month ago
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