Question

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one consequence for defaulting on a loan is to have your wages garnished.
what does this mean?
a garnish is an additional tax that will be paid to the state as a criminal penalty for defaulting on your loan.
when you get a raise or increased wages, your loan payments will also increase.
a garnish is a bonus payment that you need to make in order to get out of default.
money is taken directly out of your paycheck to cover your debt.

Explanation:

Wage garnishment in the context of loan default means a court - ordered process where a portion of a person's earnings (from their paycheck) is withheld by their employer and sent to the creditor to pay off the debt. Option A is wrong as garnishment is not a tax or a criminal penalty - related payment. Option B is incorrect because wage garnishment has nothing to do with loan payments increasing due to a raise; it's about debt collection from earnings. Option C is wrong as garnishment is not a "bonus payment" but a mandatory deduction from wages for debt repayment.

Answer:

D. Money is taken directly out of your paycheck to cover your debt.