Cruz Law — Arkansas Attorneys

Student Loan Default 
Wage Garnishment

Student Loans in Default? Federal Income Garnishment Begins May 5 — Cruz Law Can Help

If you have a student loan in default, the time to act is now. The U.S. government has announced that starting May 5, individuals with defaulted federal student loans who receive any form of federal income—including Social Security, disability, or tax refunds—will face a 15% garnishment of that income.

At Cruz Law, we serve clients across Arkansas and are prepared to help you protect your income and get your student loan out of default—legally and effectively.

How is "default" defined?
A student loan enters default status when there has been no activity or payment for 270 days or more. Once a loan is in default, the government has the legal authority to garnish federal income without needing a court order. This means your paychecks, tax refunds, Social Security payments, and other benefits could be reduced significantly.

With an estimated 5 million student loans currently in default, and many of those borrowers likely receiving federal income, this garnishment policy will impact countless Americans—and many Arkansans.

How to Stop Federal Garnishment
The only way to stop the garnishment once it begins is to take a Department of Justice (DOJ)-approved action that represents a substantial step toward resolving your student loan default. One of the most effective and immediate actions you can take is to hire an attorney trained in federal student loan relief.

Cruz Law is ready to assist. Our lead attorney has recently completed DOJ-authorized training in Los Angeles on how to properly file a Letter of Attestation—a legal document required to prove you’ve retained an attorney and are actively resolving your default.

Why You Need an Attorney to Handle Student Loan Default
Hiring a qualified attorney is one of the most reliable ways to stop federal garnishment and take control of your student loan debt. Here’s why:
  • We understand federal loan policies and legal procedures.
  • We can file the legally required Letter of Attestation with the DOJ to stop garnishment.
  • We ensure compliance with all DOJ requirements, avoiding costly errors.
  • We protect your federal income and benefits.
  • We guide you toward long-term solutions, such as rehabilitation or consolidation.
  • We act fast—which is critical given this is already in motion.
Arkansans: You’re Not Alone—Cruz Law Is Here to Help
At the recent DOJ student loan legal training in Los Angeles, only four attorneys from Arkansas were in attendance. Cruz Law is proud to be among that group. We are uniquely positioned to help Arkansans facing federal garnishment due to student loan default.

If you've received notice of garnishment or believe you may be at risk, don’t wait. Hiring an attorney now could be the key to stopping garnishment before it starts.

Contact Cruz Law today to schedule a consultation. We proudly serve clients across Arkansas and are ready to help you protect your income, restore your financial footing, and take the first step toward freedom from student loan default.

Call Us: (501) 624-3600