Financial Discolure Statement

You should be able to pay $250 over and above the garnishment to rehab....as a general rule, rehab payments are a 1% payment. Talk to the agency collecting...under the Higher Education Act you are entitled to "reasonable and affordable payments" when rehabbing. Based on your balance you might get it down to $150 or so.

soaplady, thank you so much for your help...it's like a weight being lifted off my shoulders finding this site.

I do have a couple more questions if you don???t mind.
I've filled out the disclosure form and made copies of the documentation... all of my bills (electric, rent, car, insurance, utilities....etc. etc.). Would it be ok to just send the financial disclosure statement to the CA via certified mail? I hate talking to them on the phone and I prefer to have written documentation. If it???s ok to do that, can I let them know that I want to rehab it as well and have the rehab payments set up at the same time? (I???m assuming I pay the rehab payments to the collection agency?)

One last question???.I want to make sure I am understanding what you are so graciously explaining to me. To rehab, I have to be able to pay $250 on top of what is being garnished? So if I am being garnished $400/month, I have to be able to pay $250/month more. (For a total of$650). There is no way I can afford to do that. But you're saying if I do the financial disclosure I might be able to get the garnishment down to around $150/month? (And then set up the amount to rehab above the garnishment with the collection agency).

Again, thank you so much!!!!!

Due to the default clause in your prom note, student loan collection agencies will not respond to written requests in writing. Call them.....tell them you want to rehab and that you will send them the documentation.

Soaplady is right, you have to call them. Don't worry, generally student loan collection agencies don't bite because they have to play by different rules. And also because student loan collections are very profitable for them, they do NOT want to lose that cash cow.

I went through the whole process of the financial hardship hearing and I just received the "Hearing Decision" from the Department of Education. I'm really confused.

(CONFUSION #1)
My monthly gross income is $4,000 (as shown on my paycheck) but they are saying ???You presented evidence that showed a gross monthly family income of $4,333. I don???t understand where they are coming up with the extra $333.

(CONFUSION #2)
According to them...My monthly expenses totaled $2282 (which I???m not disputing) BUT???.they say "Under the current garnishment order, 15% of your disposable pay, $495.62 is withheld. Your accepted monthly expenses of $2282 when subtracted from your family monthly disposable income of $3304 leaves $1022 in discretionary income. This amount exceeds 15% of your disposable pay, therefore, you have not demonstrated that withholding 15% of your disposable pay would cause a financial hardship.??? I???m not sure how they came to this conclusion???.can anyone tell me if this amount is correct?

I owe $20,000???I make $52,000 a year and I???m being garnished $495.00 per month???this number does not seem right.

I would really appreciate any help you could give me.

Disposable income is calculated by taking your gross and subtracting manadatory deductions (taxes and fica) and health care...other expenses like 401K, other insurances and flexible spending are considered volunatary.

I earned less than 9000 last year - and this years income has fallen - and they also want all their money now. I have no money to give them and have proven this. I would love to rehab - or have some kind of terms with them. But they simply will not listen to reason despite showing them all the documentation. I do not have family or live with anyone - pay my own rent and bills. So there is no extra cash anywhere. But they will not work with me. And yes I am looking for work. I am too old to join the military too (which they said to do).

Then go straight to consolidation thru the Direct Loan Consolidation Loan Program. Your payment will be based on your income....however with your income being that low, you will be assigned to the income contingent repayment plan with more than likely a zero payment plan. It will not do anything for your credit, but your loan will be out of default and current.