A legal process allowing a financial institution to remove funds from your deposit or share account to satisfy a debt that you have not paid. If you owe money to a person or company, they can obtain a court order directing your financial institution to take money out of your account to pay off your debt. Not all states allow garnishment actions.
Government-Sponsored Enterprises (GSEs):
Private corporations created by the U.S. Government to reduce borrowing costs. They are chartered by the U.S. Government but are not considered direct obligations. For example, Fannie Mae and Freddie Mac are GSEs.
Guaranteed Student Loan:
An extension of credit from a financial institution that is guaranteed by a Federal or State government entity to assist with tuition and other educational expenses. The government entity is responsible for paying the interest on the loan and paying the lender to manage it. The government entity also is responsible for the loan if the student defaults.
A party who agrees to be responsible for the payment of another party's debts should that party default.