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Millennial Money: Student loan default can gut your paycheck

“It’s a very powerful collection tactic that can really devastate the financial lives of the people subjected to it,” says Joanna Darcus, a staff attorney at the National Consumer Law Center who works with low-income student loan borrowers. “They can’t afford to pay their rent, buy their medicine, buy clothes for their kids and also pay a large percentage of their wages toward their student loan.”

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