garnishment-student loan

DaniB.

As you are already on the way of garnishment, chances to consolidate your loan is very low. There are various options to repay your student loan. You can try Rehabilitation program. It's better for you .

Garnishment can be disputed with US Department of Education before it starts. I'm not sure if you can stop an ongoing garnishment process, however, you can contact ED for more info.

Most of the student loan consolidation companies do not like to work with loans that are undergoing garnishment. But you can consult some consolidators too. IMO, rehabilitation is right for you. It helps to remove default status from credit report. And once the loan is rehabilitated, you can consolidate it easily.

This site has not started student loan consolidation yet. If you register with this site, I can send you some info of student loan consolidator through PM. Registration is free here.

I was the person that handled the AWG, Adm. wage garn for a federal contactor for 11 yrs. I can tell you prior to garnishemt you are sent a letter, this letter is letting you know they intend to garnish, you have 30 days to file a AWG Hearing, at that time you can set up payments or work out issues. Once you are in garnishment you do not qualify for Rehab or Cons. Rehab you must pay 12 payments on time for 12 cons months, then so long as you have a GSL, or FISL with NO judgements you can Rehab the loan,Rehab takes the bad mark off your credit report, Cons if you go to the William FOrd program direct you can cons you loans with no payments or 3-6 payments of a % of the balances of each loan, NO judgements, if you are defaulted and with one of the agencies hired to handle the loans it is harder to do eiter. Unless the laws changes in the past 2 yrs, if you have a judgment you can not cons or rehab your loans, if the loans are NDSL or PLUS (parent takes loan) loans you can not do either. go to the Gov site for loan consolidation, WIlliam Ford program and it will outline exactly what you need to do, you should NEVER pay a person or agency to consol/rehab your loans, its free wiht the goverment

also,
IRS refunds are garnished if you owe a federal laon, if you are an injured spouse meaning you earned half the income and half the refund belongs to you, file a injured spouse claim to get some or all the money back. A letter goes out to the debtor usually in Aug or Sept telling them to pay the loans or contact to pay info, if you don;t respond its to late, and if you are already garn at you job and have a tax refund its a mute issue, unless your spouse can file inj spouse claim.

Thanks for the input. Why don't you join this board? We will be glad to welcome you here in this forum :D

I am now under going garnishment for a student loan. I filed chapter 13 bankruptcy and added my student loans into the program. In my file they only filed for $5,000. After I converted to chapter 7, I recieved paperwork showing what I had paid off during the chapter 13. The amount owed under my student loans was 0. Two years later I receive a notice of garnishment for $3000. I faxed them the papers from the court, and they said they papers are incorrect and faxed me papers in return. My laywer is a complete idiot, and he says he can't help me. I am now stuck paying this extra amount.

In September I had a woman call me asking to set me up in a rehabilitation plan. I jumped at it, since she said I would be rehabilitated within two years and would be paying a lower payment than if I was garnished. But first I must pay $350 in good faith payment, well I talked them down to $200 and set up the plan. The next time I talked with her, she starts figuring my payment.... It ends up being higher than the garnishment. When I asked her why that is she said I could always file hardship paperwork, but that she could only accept payments of $260 a month. Garnishment is $250. Anyway I started the payments because it is better on my credit. Untill november, when I could not get ahold of her to make my payment...(she would only accept payment by a check by phone or debit card) she began garnishment procedures... I couldn't get ahold of her because she went on vacation and did not leave my file with anyone. She was gone for 2 weeks. When I called her supervisor he said he could not do anything because the system is computerized. Go figure... tha US government is ripping me off.

They can, unconstitutionally, garnish your wages without due process. The current government even approved garnishment of seniors social security checks. This show that the government is not on your side.

Looks like the DOE/AWG Processor spoke for me! you just covered all the bases my friend! Did we used to work together?

i was wondering is there anyway i can avoid paying all the interest that they are charging me on my student loan from the year 1995

Leathene, you can settle your loan for just the principle and half of the interest. The clause being that it is a settlement paid in 1-3 payments. If that is something within your graps, go for it.

i have a student loan the was in 1981. now i m being threaten for garnishment. could this be true from dcs collections?

Quote:

Can anyone clarify what 15% of Disposable pay actually means? Is that 15% after bills etc are paid? I am currently going through this whole mess of garnishment. I went for almost 2 years unemployed so i literally didnt have money to pay any loans. I did make a payment of 50$ when i did have the money one time. it was right after they started to want the money, but since then i was jobless. I now have a job and am willing to pay abou 100 a month, but the agency calling me won't go under 397, which i absolutely cannot afford.

Quote:

I make about 500 a month max at the moment and the lowest they will go, through the agency handling it, is 397 a month. As you can see this is much more than I could afford. I won't go into my sad story, but this is not reasonably whatsoever with my current situation. My total owed is about 65000 now. Which is due to a large amount of interest is all i can figure. I am in process of trying to get my paperwork so I can see exactly what is principle and interest.

I was just trying to clarify what disposable meant. I assumed bills etc that require you to "live" so to speak would be counted, such as rent and electricity.

Due to bouncing around on random friends and family and moving to a new state even, I am just currently somewhat settled and making progress in my life. The garnishment won't be much compared to 397, I just want to know my options for the long term, so i don't hurt myself too much.

I was a dumb kid who needed to get away from home and school was easiest. I did what i could to get the money and in hindsigh was not very smart in how I did it. oh well, gotta move on I suppose.

If anyone has information that may help me in this situation, please PM or post here. I am currently trying to learn the laws, rights i have, and how i can dispute this.

Can't send a PM to a guest.

As for disputing it, good luck. I don't think you have much chance. What about taking what you learned and using that to make more $$$? That's what the rest of us do.

Not sure why it didn't have me signed in. I am the guest you refered to in previous post wulf. As for making more money...I am in the process of doing that now. I have no doubts I will get my loans paid off and life straight, but in the present time I cannot afford the payments they are demanding and won't budge on. I'm told by the agency that once it goes into garnishment, it will be about 900 a month and no negotiations on that amount. So I would not be able to afford that with a normal job either. I'm not sure if this is a scare tactic or if they would be able to give me the 400 a month payments again in the future. If so then i could let them garnish until I get full time promotion I am shooting for at the moment, which would up my substantially financially.

So yes, I am doing what the rest of you do I suppose, but for the immediate time and place I am in now, I am trying to see what I could do to stop the garnishment and/or lower my rehabilitation payments.

So as I said before, any constructive advice and/or information on this would be greatly appreciated. Not looking for you guys to solve my problem, just trying to gather and learn as much as I can so I am not the ignorant loan borrow I was then.

Knowledge is power, right?

I wasn't meaning to bash you at all.

What did you go to school for? Is it something that could support freelance work in addition to your job? For that matter, what about getting a second job?

DF2000, I am sorry that I don't have any useful advice right now, but I just wanted to say that I like your style; assertive, persistent, but not belligerent. You interpreted a comment as an insult, yet you responded in a very pleasant manner. I haven't seen much of that lately...best of luck to you.

I went to school for Culinary Arts and was in process of completing my food service management. I didn't get to finish school due to no real fault of my own, but that's neither here nor there.

As a cook, you don't make very much more money than i'm making now unless you get into fancier places than chain. I have tried and am still trying but my lack of experience in actual hands on employment keeps me out of the loop. BUT if I do not get this promotion within the next two weeks, I will be using that for a second job. I may do that sooner, but my current employer has made it seem extremely promising on the full time promotion. And then it will depend on my actualy pay whether a second job will be needed. I'm hoping i can focus all my energies on one good job and move myself up as quickly as possible

I do not like the culinary field unless we are talking the business side, but I need to finish that degree first. hopefully once i get this on the right path I can push hard to finally doing that.

I wasn't really expecting this whole mess, seeing how I was not very smart in my decision making with loans and everything after. I should of expected this I suppose, but nothing to be done about that now. I know they are supposed to send a letter giving you 30 days etc, but I do not live where my mail was being sent and I guess my mother doesn't open my mail and/or send/forward it to me as i requested lol. I guess i should of saw to that myself. =)

PS Yes I did interpret your comment as a negative response and I did get defensive. Guess that's the frame of mind I'm in dealing with this agency who wants all my money. =p I apologize )

Having had time to read over my earlier remark, I can see where you'd take it in a negative light. I apologize. Such was not my intent.

The remark was basically accurate, in that I was taking a page from my own life. I took what I was doing in school and used it as a second [small] income, because I had no other choice. This while still in school. My presentation sucked, however. I plead stress and lack of sleep.

Explanation. Not excuse.

[quote]I make about 500 a month max at the moment and the lowest they will go, through the agency handling it, is 397 a month. As you can see this is much more than I could afford. I won't go into my sad story, but this is not reasonably whatsoever with my current situation. My total owed is about 65000 now. Which is due to a large amount of interest is all i can figure. I am in process of trying to get my paperwork so I can see exactly what is principle and interest.


All you have to do is ask the CA for a current breakdown of charges from the client. More than likely most of your past due interest has been capitalized into your principal balance and you will also have collection fees averaging 20% added to your balance.
I was just trying to clarify what disposable meant. I assumed bills etc that require you to "live" so to speak would be counted, such as rent and electricity.

Nope. Disposable income is your pay minus involuntary deductions..taxes, SSI, fica and healthcare. 15% can be garnished after that point.

Due to bouncing around on random friends and family and moving to a new state even, I am just currently somewhat settled and making progress in my life. The garnishment won't be much compared to 397, I just want to know my options for the long term, so i don't hurt myself too much.

I was a dumb kid who needed to get away from home and school was easiest. I did what i could to get the money and in hindsigh was not very smart in how I did it. oh well, gotta move on I suppose.

If anyone has information that may help me in this situation, please PM or post here. I am currently trying to learn the laws, rights i have, and how i can dispute this. [/quote]

At the top of this forum is a sticky with all the laws and basic student loan information. Rehab is in there as are the rules and regs on garnishment.

Keep in mind that by my calculations, you are accruing AT LEAST $300 per month in interest. Periodically they capitalize the interest so that hurts your bottom line even more. Yes you can get a lower payment plan but it is not going to do anything for your balance or your credit.

I was once nicknamed Trunobulax the Killer Puppy by a Zappa fan....
I was in a rehab plan, missed 1 payment, and POW they're garnishing my pay. I am trying to find out how to file hardship. Is there any bankruptcy possible to eliminate a student loan? Fifteen years ago, I borrowed 8,000.00 and it is now 25,000.00 or more, even with several payment efforts over the years. The sad part is that I have never even had a job with the degree. I know, lets get out our tiny electric violins....don't eat no yellow snow ya'll....

Get a divorce and make sure your child support payments exceed the maximum amount you can be garnished in your state. Do not live with your X. Make sure you let every crazy religious nut you know that the gov forced you to divorce.

FIGHT THE SYSTEM. I was able to make my payments until my employment was outsourced. ..several. times. I will not ever pay my student loans.

Stop and ask yourself, can you really get ahead with any of the payment options you are given? if the answer is no, resist. This is a form of slavery. student loans are the securities that much of the debt market is based on and we are the slaves. I will not be a slave.

Such drivel revolution. You will pay them. If you work again they will garnish you. They will garnish any government benefit payable to you include SSI and DSSI. Ultimately you cannot fight the system. You are always better off working with the system instead of against it.