Student Loan Wage Garnishment

How much do you owe? With your balance I might be able to give you better options.

You will have to respond to the proposed wage garnishment letter ASAP. You must respond in writing and will have to enter into repayent.

I owe about 10,000. I am gathering my information to request a written hearing. It said I have 30 days to respond so I shoould have it out by the end of the week. I just want to make sure I have options if they reject my request.

With a $10k balance, you are looking at a standard payment of $100 per month to rehab, lower if they go with reasonable and affordable. You have to figure out a resolution cause you will have to start paying.

Any suggestions on getting it lowered? When I told them I couldnt afford another $120 a month they didnt budge.

My wages just began to be garnished. In my case, I never got a notice telling me when it was going to begin, or what options I might have. I dont even have a # to call, just a note on my paycheck refrencing student loan garnishment. What should I do? They are taking $500 per month. I am married with 2 kids. I am the sole earner. Any advice would be awesome.

I am assuming this is a federal loan. They would not need a court order to garnish your wages

James...notices would have been sent out informing you of the pending garnishment.You would also have been sent numerous dunning letters from the CA. Does your guarantor have a correct address and phone number for you? It is your responsiblity to notify them of any change.

By my calculation, your disposable pay is around $3300 per month.

In Nov of '08 I started to pay back my student loan to a collection agency, I was informed that I must pay the minimum due for 9 months straight to get my orginal guarentor to adjust my monthly payment. With that said why did the federal government take my whole income tax return if I am paying monthly now??? Also, I was laid off from the hospital I work at and looking for work now. If I find a job are they going to garnish that also??? HELP!!!!

Anytime you are in default on a federal loan, the government is entitled to take you tax refund for any amount due. Guarantor do remove individuals that enter into repayment however borrowers do have to meet certain conditions. Conditions vary by each guarantor...some require you to be in repayment by a certain date, some require 3 payments, others require a minimum dollar paid in that year. If you started paying in November, it was probably too late or not enough to remove you from the off setlist.

If you continue with the rehab payment, your loan will be out of default by next tax season. Plus because you were laid off, you cannot be garnished for at least 6 months.

I'm sorry what do you mean by I can not be garnished for 6 months? So if I find a job I will be ok?? Can you explain further.

From the DOE site as an objection to being garnished.

The borrower has been reemployed within the past 12 months after being involuntarily terminated from the previous job.

This means if you were laid off or fired from your last job, you cannot be garnished for 12 months.

Does anyone have a copy of there hardship letter so that i can see a sample

I am getting garnish for student loan non payment currently. I am about to switch jobs. Do they have to start the process all over again. Meaning sending out the paper to me and this giving me a chance to make payment to stop the wage garnishment from my new job

Technically if you are making a job change and not being terminated, your garnishment should continue on to your new employer. However, you might be able to sqeek thru.

i had student loan $28k grow up to $75k, i didn't find a job with my dgree and i work a minimum wage job but still paying $100 a month for my collector agency but now thye are told me to pay $800 per month or i will face garnishment if i am still on payment do they have a right to garnish?

Is this a federal loan or a private loan??

federal loan

salliemae/usaf

$100 is no where covering your interest so unless volunarily pay more, they could go for the garnishment.?? I would suggest consolidating your loan with the Direct Loan program asap.

OP..if you call them up and ask them if (maybe?) you can make some kind of % payments or ask for a 'Hardship' program, at least they know you are trying to 'make good' on this loan.

I was contacted by a company that took over my student loan and was asked to set up payments directly from my checking acct, I did this and they took about 3 months payments and then stopped. I was in the hospital and when I got out they sent a garnishment warning giving me 30 days to take care of it. I called the person that was handling my case, they only stopped taking the payment for one month, and she said that they could not get the last payment to go thru the bank? I told her I would contact the bank, which I did and they stated that there was no attempt to take that payment out in that month. I called her again and she would not respond to my explanation. She then asked me to give her a payment right away and we will call it an earnest payment?same amt that I have been paying, also stated that she would submit to the agency about me making payments and it would be ok. I then recieved a nasty letter stating that I have not replied to any letters of the payments and that I may be garnished. I called her back and she don't worry I was withing the time limit and for me to fax all the financial paperwork that I did not need the first time to her? She had never asked for this before, I did so and she called me and said that the amt I was paying was not enough and to make a better case, why should I make a better case when I was making payments? I sent more info and she would never return my phone calls after that, and I got a letter this past week saying that they are going to garnish my wages for an amt lower than the 15% they normally do? Why am I going thru this when I was making regular payments? I feel as though I have been part of a scam somewhere, is there anything I can do? I know that they say you cannot be fired for a garnishment but with the type of work I do, they will find another way to let me go, I live in a right to work state, they don't have to have any reason nor give me one. I will lose 17 years of employment, I am really worried, as they are now contacting my husband who has been making regular payments also and said since he did not inform them of his recent promotion and raise at work they have put him in for garnishment also. Do I need to get an atty over this or would that help? I have an illness that cost me a lot of money in monthly treatments and meds that keep me going as there is no cure for it, she knew of this and said that it does not make a difference.

Savanah...is this a federal or private loan?

This is a federal loan

When it comes to the direct withdrawal of your payments, it was your responsiblity to make sure that the payments are made monthly which means you need to be watching your account. Stuff happens...encoding screws up, payments are rejected. Your bank cant tell you why it happens, it just does. You are dealing with a loan that was due in full upon default and all payment plans that are made are temporary. Did you husband default on his federal loan too? You both need to be looking at the Direct Loan consolidation loan program to get these out of default and back in current standings.

I received a collection letter from the Ohio Attorney Genral's office trying to collect tuition for UC Raymond Walters College. They do not list any classes and only the time frame of summer 2008. I was taking evening classes in 2007, but I am certain that I do not have unpaid tuition and did not take any classes in 2008. The collection agency says I have 7 days to pay the debt or there will be litigation and wage garnishment. Is that legal? The school says I registrered for the classes and refuses to look at an appeal. The school and the collection agency are very hard to reach and the school is especially rude and unresponsive. Where do I start? Who do I talk to? Any help is greatly appreciated!

Have you tried looking on your account online at the school? Surely you have received billings before from the school. Could the summer 2008 be the charge off date? The school accounts receivables office should be able to provide a student account statement if you cannot get it online. However since it is a state school, action will happen very quickly.

Thank you very much. Yes - I have looked on line and nothing is there now. I even looked for summer 08 and there is nothing. I only received one bill from the school and called to find out what it was for. I was transferred to billing and the person there said they could not tell what the class was. I'm afraid RWC is an administrative nightmare - very difficult to reach an actual person, so I have not been able to get proof or verification of anything. I guess if it goes to court, they'll have to come up with something. The one time I was actually able to reach someone at the CA, they told me they were not able to get verification either. The amount they are asking for is $1,448, and I can't figure out what it is for. Very, very frustrating !!

I plan to fight it. Unless they can prove I attended the class or classes, it will go to litigation.

Thanks very much for all your help - this is a wonderful website.

Can you go into the school to physically look at the records? Make them show them to you.

I wish they would have told me that the payments are temp she led me to believe that making these payments were something that we could continue to do. He was current on his loan and they stated that he did not inform them of his increase in pay and that is why they did this to him. Can we do a direct loan consolidation if they are in garnishment?

You cannot consolidate once the garnishment has started. However if they threatening it, it does take awhile to start. He gets a 30 day notice first.

Thanks for the help, I did another post but do not see it here so I will repost it, sorry if two show up! I still don't understand how they can garnish me if I am making payments? But can we get a Direct Loan consolidation if the loan is in garnishment?

No, as I said above, you cannot consolidate once a garnishment has started.

This school just amazes me! It certainly will be curious to see how this falls out. I called the school to get an appt. to look at my records. I was told that was not possible. The person I talked with sounded like she was about 90 years old and said that they just don't make appts. and I would have to stop in and take a chance. But I was able to find out the name of the class and that I allegedly registered on line. Well, I don't remember doing any such thing and I know I did not attend the classes. The school insists I owe them for these two classes. The first question that comes to mind is - Can they legally charge me for a class I did not attend? Maybe state schools are special and allowed to engage in legalized extorsion. That certainly seems rediculous.

Also, so the CA could not say I did not respond to there threatning letter, I sent them a letter - certified mail - just to say that I have not yet been provided any proof or validation/verification of the alleged debt, and as far as I know I don't owe the school any money.

Anyway, it all seems very strange and I'll keep you posted. We may learn something from this fiasco yet.

If you enroll and then do not attend and you do not withdraw, then yes they can charge you. That is standard practice at all schools, including state schools.

Wouldn't the school need to provide proof that I registered? I find it a bit strange that I would not remember something like that????

Depends on the registration method. Online enrollment doesnt have a signature and only you can do it.

I have 11 loans with Citibank. I was delinquent because I couldn't afford my payments and was stupid to not discuss my options with someone in a timely manner. Eventually, I spoke with American Student Assistance who I thought was the guarantor of all of my loans because they and Citibank were the only people sending me mail. They helped me and I got into contact with Citibank and set up an unemployment deferment since my hours were cut and I work part-time now but am registered with an employment agency. Citibank told me that I was close to going default on all of my loans and that it may take a while for them to process my deferment due to the overwhelming amount of cases they are dealing with due to the current state of the economy. I asked them what would happen if the guarantor attempted to buy the loan while my deferment was being processed and they told me that they would send the check back to the guarantor and my deferment would still be applied. American Student Association said the same thing, that Citibank would send them the check back and everything would be fine. I kept calling them once per week for 3 weeks and they kept saying they received my deferment request and it was still processing.

Finally, I get a letter from Citibank stating that they backdated my deferment to get me current except for on two loans ($8k)because EdFund who I never heard of has purchased my loan and I should contact them. The very next day 4/26/09 in the mail I get a letter from EdFund that they are going to garnish my wages. I work less than 10 hours per week and have to borrow from everyone to even eat. I cannot afford to pay back my loans right now, that is why I got a deferment. They never sent any notices to me and the first contact I get from them is that they are garnishing my wages if I don't make a payment plan arrangement. I don't understand how if all my loan payments were due at the same time and American Student Association is suppose to be my guarantor how some company in California is trying to garnish my wages on 2 out of 11 loans but the rest are in deferment. I've called EdFund several times and they are "closed" despite it being their normal business hours but their recording says I will be default as of May 12, 2009. I have a degree in criminal justice and the jobs I apply for do credit checks, I don't want a default on my credit so I cannot get a job, it is already difficult enough, which will make it even more difficult to try and pay back a loan. Is there anything that can be done to not have my wages garnished, or get my loan out of default? I've been reading horror stories online about EdFund and their practices and their website says they are no longer offering loan rehabilitation.

Edfund is the guarnator for the California Student Aid commision...ASA is an east coast guarantor. Did you switch schools at some point?

I went to the same school in Maryland the entire 4 years, the 2 loans edfund purchased were the first loans I took out for my very first semester. I have never heard of edfund prior to this letter but I have always been in contact with ASA who I thought was the guarantor of all of the loans since they were all with citibank and all of the same statement

Edfund and ASA dont purchase loans...Citibank files a default claim with them and they are forced to pay claim. Prior to defaulting, you are suppose to deal with the bank, not the guarantor. Also, you prom notes would have listed who the guarantors were when you signed for them. Also, were you reading your mail? Numerous pre default letters would have been sent at least 6 times before the default claim was filed.

I opened every single letter..the mail I got from Citibank were bills and the first letter I received from ASA regarding default I contacted them immediately..all of my loans were on the same statement so I don't understand how 2 out of the 11 loans had claims filed against them and not the others..the letter from Citibank approving my request for deferment says "we no longer own this loan. it was purchased by the agency that guaranteed your loan" I contacted the guarantor because their letters stated that they wanted to help me, I only spoke to them once which is when they sent me deferment applications and all communication from then on was with Citibank who told me I was not default and they had not filed a claim yet, but delinquent and they would process my deferment and would put me current on all my payments which they did for all the loans except the 2

You are dealing with 2 totally different guarantors at different sides of the country...like dealing with Ford and GM. I dont know why you have two seperate guarantors but you obviously do. It happens. Edfund/Csac would have been listed on one prom note, ASA on another. One doesnt know what the other is doing. Talking to ASA doesnt do anything for Edfund.

Part of the problem is that you waited too long for deferment. It takes 270 days to default, so 9 months and obviously your dpaperwork didnt get processed in time for Edfund.

My suggestion to you now is to get this mess consolidated with Direct Loans ASAP. Your collection fees will hit the Edfund account at 60 days so if you can get your consolidation completed before that, you will not have to pay them. If you wait, you will be stuck with an additional 24% in collection fees.

Thank you for your advice.

I have just been garnished for a student loan default that is 19 years old, I am retiring in a month, will the garnishment transfer to my retirement?

It will transfer to your social security payments. And they will continue to seize your income tax returns.

They have not started taking money from my tax return. I am concerned that they will take my teacher retirement. Also are they required to serve me with a writ of garnishment? I received nothing.

Nope...no court order is required under federal administrative wage garnishment. And they will not touch you retirement, just your SSI.

After you officially retire, you might wanna talk to your guarantor and attempt to get this consolidated thru Direct Loans before they go after you SSI.

I am currently haveing my wages garnished at my employer at $160 per month due to a defaulted school loan. Which is alot considering I am single and live on my own thats my gas and/or electric bill for the month. They have also been taking my federal tax return for 2 years now, is there any way to stop one or the other or both???? I am barely making ends meet now. My tax check last year was $1200 they took every dime. Is there anything I can do????? Please Help?????

You were given the opportunity prior to the garnishment starting to appeal....they sent out a 30 day notice. Did you not respond to that?

I owe about 10K in federal loan. I was informed I'm in default and am soon to be up for wage garnishment. I am under employed (part time at Starbucks!), my husband is unemployed and we have a six month old baby. I'm taking care of the three of us on my own! The collection agent I spoke to would not budge beyond a 116 dollar monthly payment. I have ZERO deposible income! What will happen from here? I cannot afford garnishment in the slightest, and I'm hoping there's a way to make someone see that!

Have you looked at consolidating it with direct loans?