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arehm23
New Member

Is there interest paid on student loans if paying through garnishment?

How do I know how much interest is paid if only paid through garnishment?
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2 Replies

Is there interest paid on student loans if paying through garnishment?

Your lender will have to tell you that. 

Carl
Level 15

Is there interest paid on student loans if paying through garnishment?

Generally speaking, if you don't receive a 1098-E, then you have nothing to deduct. It's common by the time it gets to something such as garnishment, things are so far in default that the lender just wants their money back. It's also true (in most cases) that when the defaulted loan is sold (generally to a collection agency) then it's no longer a "qualified" student loan; when means the interest just flat out is not deductible.

 

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