Student Loan Wage Garnishment

I would think that no matter what state that you live in that you are required to receive any sort of notifcation of any debt that is owed especially student loans. There is a member on here that is familiar with student loans and will be around to advise you.

Guarantors or the CA's collecting on student loans will send out a pre-garnishment notice to the last address on file. You have 30 days to respond for an appeal. If you do not appeal, your employer will receive a garnishment order which requires them by law to withhold 15% of your disposable wages.

A lot of people get upset because they did not receive a notice because they moved. The guarantors position on this is that it is the responsiblity of the borrower to notify their lender/servicer/guarantor of any change of address. If you failed to do so, you can appeal on the grounds of financial hardship, but it may take awhile to get a hearing because you did not respond in the alloted 30 window.

Dear SoapLady,

If and when you ever decided to write a book on your knowledge of Student Loans, I want and will be the first in line to buy a copy. You are amazing and thank you for being here.

All the Best,
Luke

Please point me in the direction of someone I can speak with regarding studen loan garnishment. A couple years back I decided to go back to school and ended up trying a online school. Big mistake! After the first class I could not get into their system. Or I got in and got bumped out and couldn't get back in. I tried calling the school no one would help me. Eventually I went on with life until a few years later I saw the loan on my credit. Once again I tried to dispute and resolve with no help. No one will help me because its a online school. I have tried several places. I received no phone calls, no notice in the mail, no court hearing no nothing. Then in July my wages started being garnished. I have now received a letter just recently from EDFund (the ones garnishing and this is the first I have receieved anything from them) and they are stating a second loan will start being garnished next year. There was only one loan. How is there a second? I believe I should pay for the one class and I believe they have taken a sufficient amount from my salary. I have sent letters to edfund, the online school, bbb, district attorney, everything. I have tried financial advisors, debt consultants. No one can point me in the direction I need to be pointed to. I feel like I have no where to turn. Please help. Please email me at EMAIL REMOVED with any information. I am desperate for help!

Did you officially withdraw from the class/school? How much did you borrow???? If you did not withdraw and simply walked away from the school and went on with your life, you legally owe all the money. What you dont seem to understand is that Edfund did not guarantee you an education ....they simply loaned you the money to go to the school of your choice. Any refund had to have been done via the school if you met there withdrawal policy guidelines. Edfund will end up telling you the same as will every organization you have written too.

Numerous collection notices would have been sent you from both your lender, guarantor and edfund before the garnishment stated. Your dispute is simply not valid and you will not be able to get out the account. You may be able to appeal the garnishment but you wil have to pay the debt back.

The SoapLady will be your salvation. I am sure she will see your post and be with you shortly. You have come to the right place for help and welcome.


Lu,e

I have garnishments which I can not afford due to old defaulted student loans.
With the garnishments, I get only $800/mo working full time, and my mothly expenses are over $1600. I am sinking quickly and need to know how to file an exemption from garnishment due to financial impossibility, or what my alternatives are. I am working on filing chapt 7 on my own, and will work with the lenders to restructure my student loans after my 7 is done, but for now, it is impossible foe me to make my current obligations. Please advise.

I see that there are many frustrated by the situation we are in. I am no exception. EdFund recently tacked on 18,000 dollars to my loan as "collection" fees. While I am just now starting to research how this was possible, I figured I would try to reach out and express my frustration. Me and many others need help, not greedy lenders who are making an otherwise navigable situation, impossible to navigate at all!

Worst part,...I will be paying these loans till Im 65! WOW!

If our goverment can bail out the housing market where people are loosing their jobs, homes, etc, why cant they help the people who are in a Student Loan Crisis. It is the same thing where people are loosing their homes, jobs, etc. Someone tell me that there is a difference.

Jestiron.....your collection fees were part of your original prom note. Upon default, you agreed to pay all collection fees applicable by law. They are mandated at 18-25%.

Luke....the government set up the ICR repayment program the the Direct Loan Consolidation loan program for people who were feeling the pinch of education costs. How many other loans do that?? Or allow you defer them for as many years as a student loan does?? Or allow for public service cancellation?? Think about it.

As always Soaplady, you are right. Its just that after 25 years of this, it can be over whelming. The programs you speak of just may be my salvation if the time comes and I do hope that I will be granted one of them.

Thank you

I have not been notified other than a threatening call to my employer re the defaulted student loans what can i do?

Need some more information Donna. If the CA has told you they will verify your employment for garnishment, they can and will. Then you will receive a 30 day notice. It is your responsibility to make sure that the CA has your current mailing address.
The only way to avoid garnishment is to a agree to a repayment plan.

I was recently garnished, and they have been taking my income tax, can they do both?

What happens if the school that you attended closed down.
There was no warning or anything.

Quote:

CAN THEY TAKE YOUR INCOME TAX REFUND IN ITS INTIRETY TO REPAY THIS LOAN

yes....state and federal

plus they can garnish your wages without a court order

It seems I am in the same exact situation as the others in this case. In addirtion to my situation I have now lost my job and with up coming tax returns ahead which I am in desperate need of will as well be taken from me. Is there anything we can do or re establish a re payment plan other than garnishment. This such a hardship. I feel them same as others this will be a balance due for the rest of my life. How am I ever to repay them with all the constant accruing interest. Is there anyway to stop the accruing interest. This can really bring a person to giving up on everything. Please advise me of any resolution.

Unfortunately tax offset lists were submitted to the IRS in early December so your name is already on the list. A letter would have been sent from your guarantor informing you of there intent to garnish in late August....that was the time to act.

Your interest is accruing because you are not paying...you cannot make headway if you ignore it.

Have you looked into consolidating it with the Direct Loan program....you would automatically be assigned to the income contingent repayment plan. All that info is in the sticky section at the top of this forum.

i work for a ca that handles defaulted student loans, the best thing you can do if your wages are being garnished or if your loan is with the dept of ed is to get into the rehabilitation program. this program allows you to make payments for nine to ten months, then a new lender will buy your loan out of default, and the dept of ed will wave most fof the collection fees. If you are being garnished you will have to make the payments on top of the garnishment but when the new lender buys the loan back that will stop. ; )

hey student loan rep!!

Only thing you stated in error is the collection fee statement. If you have a Direct Loan in default, then the DOE will waive all collection fees. However those with FFELP loans do not have their collection fees waived.

Likek Carla Johnson's question: If taking wage garnsihments can the student loans take tax returns from a single parent of two children that i am providing for and trying to live in this trying times of all Americans??

Yes...in order to get your tax return back, you must be in voluntary repayment. So those being garnished will not receive their tax return back.

I started getting my paycheck garnished 4 months ago to repay my student loan. When I file my taxes with my 5 children and wife I should have enough to cover the balance of my loan. Will I recieve the balance of my return and if so how long does it usually take? Thanks!

Thay take my taxes away from me and i going to lose my apartment is there anything i can do

A warning letter would have been sent you last summer informing you of there intent to seize your tax return. You could have entered into repayment to avoid this.

Hello. I have been on the rehab program since July. I receive the normal letter each month from the government stating they can garnish my wages, but nothing about taxes. I am afraid to ask the person I talk to in the rehab program because they are kinda pushy. I will be out of rehab end of March.

If I am in the rehab program will they take my refund, or should I wait until the last payment in March to file?
Thank you!

I have filled out some papers to consolidate my student loan , and then they sent me the papers saying it would take 10 days , but then I recieved a letter which was posted 1 day before I recieved a nasty letter saying that I will be subject to offset my tax refund, My question is , If I am consolidating my loan and they are working with me to do this will they take my tax refund , I really think me recieving both letters in the mail was clearily an oversight since they are helping me consolidate my student loans , what do you think?

It might be,it might not be. If you are in default and did not enter into voluntary repayment, they are entitled to take your taxes, regardless of the the pending consolidation. The two actions are not related and have no bearing on each other.

i was in the volutary repayment program, but in august of last year i changed banks and forgot about the program, and now they are garnishing my check, if i was in the repayment program before will they still take my income tax return?

More than likely you will loose your return due to the garnishment.

If I am in Wage Garnishment can I still qualify for the loan consolidation? If not does anyone have advice on what else I can do to stop it besides paying in full ( wish I could). The loan agency DCS started loan Rehab with me but, they refused to send me the necessary forms and agreement so I stopped paying them becaus there was no proof I wasnt paying via checking account because i know that sometimes they take more then authorized especially if there is no written agreement. Alot of the the loan agents are crooked its seems.

NO, you cannot consolidate if you are currently being garnished.

Stopping paying was probably the dumbest thing you could have done (no offense meant). If that agent at DCS refused to send you documents, all you had to go was call and talk to somone else, or move up the ladder. If that didn't work, you should have called the Ombudsman.

Now you're stuck, you can't rehab again, and as soaplady said, if you're being garnished, you can't consolidate.

There are no documents for rehab that have to signed until the rehab payments are complete.

really? I could have sworn when i rehabbed my loan a few years ago that i had to sign a document saying that i agreed to the monthly terms

How will I know if I'm on the list for garnished taxs?
Is there anyway to look at the list?
I been out of school for five years, does this qaulify for garnished taxs?

Do you have a federal loan in default?

I am in a chapter 13 bankruptcy and my student loan was added in this repayment plan, can they still take my taxes?

I think the bankruptcy trustee has first dibbs on it

Thanks, my attorney has stated that the trustee will not get my taxes, but the student loan people and the irs keep saying they will still take my taxes, so I am not sure what is going on the irs keeps referring me to someone in their bk dept, but that person is never avail so I do not know who to believe.

and the student loan company is NCO and they have recieved my bk paper work so they know it is filed but they need to remove the offset they have put on my taxes

I have a Student Loan, as well. NCO isn't a lnder for Student Loans. Is this what you're stating..or..am I misreading it? A Federal Student Loan you cannot file a BK on. If you are in Default with it, the can 'Offset' the amount you owe through Tax Refunds, etc. It's REALLY hard to put a Defaulted Student Loan back into a 'good status'.

no my student loan was turned over to NCO to collect on but I filed chapter 13 repayment plan and included the student loan in my plan so it is being repaid, I am wondering can NCO still try to take my taxes since I am in a repayment plan?

NCO is a CA...they do not own the loan. They do not take taxes either. That is done by your garnantor.

myguanantor was wells fargo, my question is since I am in a repayment plan can my taxes still be offset?

Is this a private or federal loan?

(I think?) either way., Private OR Federal loan, you can't file BK or anything on it. If it's in Default (Private or Federal) they can garnish your paychecks, take your refund to pay it back, etc.

How long after going from wage garnishment to voluntary repayment does it take the IRS to get notice not to hold your return for student loan purposes?