Private Student Loans

Unfortunately, the consequences are the same like federal student loans. Your tax refunds may be withheld and you will not be eligible for any financial aid.

The legal steps to garnish wages are significant only if you default. You don't have to worry on this if you show some payment activity, even if you are late. For those who habitually miss the payments or miss several in a row, they come under legal problems.

Okay. This is regarding a 5 year old bill for $1300 from an online college. I'm not interested in any further student loans. Just wanting to know if they can garnish wages or steal tax refunds WITHOUT actually suing me.

The SOL never expires on student loans. In case you fail to pay, the creditor will get aggressive or hire a CA to recover the amount. Communicating with the lender is always a good solution to avoid default. There is always the option of deferment or lower your monthly payments. You can get is sorted out with the lender.

Can private student loan collector agency garnish my wages and tax refund?

Is this for a private or alternative student loan??? Then no, your wages cannot be garnish without a court order or your taxes taken

As I have learned over the past year, a private student loan collector has no power other than to annoy you with telephone calls. And even then a quick 'cease communication' letter will take care of that. They can't touch wages or tax refunds.

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Private student loan companys do actively sue and do pursue wages. That is a 25% garnishment in most states and they dont lessen them for hardship either.?? They will garnish both the borrower and cosignor at the same time.

soaplady, do you know what the percentage is for pennsylvania? I thought wage garnishment was 10-15??

Thanks for the answer soaplady??????????????????????????

PA is a non garnishment state for consumer debts. However federal student loans can still garnish 15%.

ok so if i default on my private loans what can i get sued for???

Just like any other consumer debt in the PA, they cannot garnish but still allows them to freeze/seize your bank accounts and lien property. A judgment is a judement.