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Allied Interstate and consolidation of student loans

Date: Wed, 05/19/2010 - 13:02

Submitted by anonymous
on Wed, 05/19/2010 - 13:02

Posts: 202330 Credits: [Donate]

Total Replies: 7

Allied Interstate and consolidation of student loans


I have student loans currently in default (approx $11,000 total). I just began the consolidation process with the government last week. Allied Interstate is calling me at work, but I have yet to speak to them. Since I have caller ID and am the only one in my office, i just let them go to voice mail. My question is: is it worth answering their call and letting them know I've begun the consolidation process? Should I wait until I know for sure that I'll be paying the loans back under consolidation before I talk to Allied? Can they start wage garnishment before I'm consolidated? I want to pay them back and have finally come to a place where I can pay regularly to get rid of the debt, but want to avoid wage garnishment at all costs. What's the best way to deal with Allied?

Thank you!


Sorry attorney, but Allied is a vendor for both the Department of Education and for several FFELP lenders...these are government contracts and the student loans collection divisions are completely seperate from the other consumer loan divisions. And since you have no knowledge of student loans, kindly refrain from giving advise.

Technically you are required too be in repayment to qualify for a consolidation loan. Yes they could start a garnishmet before the consolidation has been completed. If you read the Direct Loan website, it does say that you need to be in repayment on your default so you loan could be held up or denied.


lrhall41

Submitted by SOAPLADY on Wed, 05/19/2010 - 13:16

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Actually, that was a serious question. If Allied never reaches me to speak to me directly, can they go ahead and garnish wages? And the "they" that signs the consolidation application--is that Allied? I want to pay through consolidation. and for garnishment--is that 15% gross, or 15% of your disposable wages?


lrhall41

Submitted by anonymous on Wed, 05/19/2010 - 15:36

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Garnishing is a very real possiblity, especially if you are avoiding them. When I was collecting, it was our office that certified the consolidation apps and if garnishment was in the process, the app was denied.

It is 15% of disposable wage....your gross minus mandatory deductions plus health insurance.


lrhall41

Submitted by SOAPLADY on Wed, 05/19/2010 - 15:47

( Posts: 17315 | Credits: )


Quote:

Originally Posted by SOAPLADY
Garnishing is a very real possiblity, especially if you are avoiding them. When I was collecting, it was our office that certified the consolidation apps and if garnishment was in the process, the app was denied.
It is 15% of disposable wage....your gross minus mandatory deductions plus health insurance.


Okay, so if I answer Allied when they call, admit that I am responsible for repaying, can I ask them about consolidation? Or will they try to push rehabilitation or garnishment? I can pay, but will I need to rehab the loans for 9 months before I can consolidate? I'd like to avoid the embarassment of garnishment if possible and go straight to consolidation because it will be easier to pay off.

Thank you for your help!! Much appreciated.


lrhall41

Submitted by anonymous on Thu, 05/20/2010 - 09:21

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"Consolidation offers a relatively easy mechanism to satisfy [URL="http://www.debtconsolidationcare.com/forums/loandefault.html"]defaulted federal student loans[/URL], to restore eligibility for additional federal student aid if no other unresolved debts remain, and to repay a loan obligation without the pressure of being in a default status.
Prerequisites
A [URL="http://www.debtconsolidationcare.com/forums/loandefault.html"]defaulted federal student loan[/URL] may be included in a consolidation loan after you’ve made arrangements with the loan holder and made several voluntary payments. Loan holders usually require three consecutive, voluntary, and on-time payments prior to consolidation."

From the Ombudsman site--so I should voluntarily pay Allied at least 3 monthly payments in order for them to agree to consolidation?


lrhall41

Submitted by anonymous on Thu, 05/20/2010 - 09:24

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