Wage Garnishment 'threat'

Is this a federal loan?? If so they can submit you to garnishment pretty quick.

WHo is calling you and who do you owe?

a company called FMS. Yes, its a combination of federal loans and two pell grants. totaling over 40k from what i can tell by doing my own homework but i am in default over all of the loans being consoladated and after doing my homework on the loans origins, i found out that about 15k of the original loans were from a school i attended that closed about 2 months after i started with them. When i asked the CA about that and that after doing research i found that the loans should have been refunded, but never were. I ended up going to another school and getting more loans to pay for my education, not knowing that the other school never refunded my original loans.

Pell grants are not collectable funds unless you withdraw and become ineligible for them.

Ok...closed school. What school did you attend and did you follow up with your lender immediately about them being refunded or discharged for closed school.

i attended Kelsey Jenny College, and no, I did not know that I could follow up with my lender, i was you and dumb and did not know. I only recently (this week) became aware of the website that i could look up all of these loans. When i consolidated them all with william d ford program i was advised at that time too about all of the loans and informed the person who helped me do the consolidation that the school had closed on me, and i was under the perception that they had taken care of it and that there was nothing else to do. So when i asked the CA about that again, they told me that i was screwed because i did not request the refund and now i have no choice but to pay for all of it. I have an astronomical amount of debt, not just with the student loans, but at least 20k more in medical bills. I have only been at my current job for 9 months and did not have a job for 8 months prior to that. Everything is now piled high and i took a drastic pay cut to get the job i have now for the medical benefits so i could continue treatment.

Did you ever apply for a closed school discharge?? I am familiar with that school name since I used to collect on california student loans. You have to do the paperwork...no one would have or will do it for you...this is a borrowers responsiblity

http://www.ed.gov/offices/OSFAP/DCS/forms.html

I want to pay something, but what i can afford and definitely not something that a CA seems to THINK I can afford. I need some help, can someone please help me. I dont think it is right that a CA can call you and demand your checking information so they can 'deduct' from your account each month what they feel they need and not send you any paperwork or anything until AFTER you have agreed to what they have said over the phone 'which is being recorded' and then and then will you know what you have agreed too, but give them your personal information now. Is that right? It does not seem right to me. If a legitimate company has a legitimate claim, doesnt the consumer have a right to documentation of that claim without the pressure of 'you need to pay now' and 'we will mail it out to you, but you wont receive it in time' so just give us your checking information'. They became quite agitated with me because i kept asking more questions. What can i do and who can i work with to help me from turning to bankruptcy? I have no savings, the place that i work at is no longer paying their vendors so that they can pay their employees so its just a matter of time before layoffs start...help me please.

ok, i will put in for the closed school loan. But the CA told me that it would be rejected and that i am just wasting my time. Is that true? I dont know who to believe at this point because the department of education told me that it needed to request the school closure refund.

You cant turn to bankruptcy for student loans...they are non dischargable.

Technically upon default your balance becomes due in full....you agreed to these terms in your prom note. It sounds like they are trying to rehab you...$400 would be a 1% payment on a $40k loan.

I have yet to receive any documentation, what can i do? What are my next steps to keep this from becoming an administrative wage garnishment without ending up homeless?

What documentation are you waiting for? Other than dunning notices they dont have to send you anything unless you put it in writing. And pretty all you will get is a copy of your prom note which you should already have a copy of.

so basically what you are telling me is there is no hope or help? I cant do anything to prevent this from happening? Just seat here and see if what these CAs are telling me is the truth? Do you have a cc number you can give me so that I can give it to them? Cause basically, i have a company that is calling me, that i cannot verify as legitimate asking for my personal information. thanks for trying. this site is no help.

What do you want them to send you?? Did look your account up on NSLDS?? Did you call the Direct Loan collection division? Read their website?? Have you done anything?

i have gone to all of those sites, made all the calls, no one can verify what is going on, and the DoE says i am in collections, but they cant verify who i should be talking too. the CAs wont give me an address to send payment, they keep telling me to give them a checking acct number that they can 'draw from' and they will send me a letter letting me know what i have 'agreed too' after they get whatever i have in my acct. So now tell me, what the hell would you do?! I have done damn near everything i can. How do I know if this company is someone that is just trying to get my personal information for whatever use. Like I said, they called me, they are making demands over the phone, and they dont want to answer any questions....so now what? Geez!!!

DOE will most certainly tell you who is collecting on the account and they will give you the phone number. FMS is right on the DOE website as a collection agency collecting for them.

You still didnt say what information you want the CA to send you??

Have you done any research or read this forum on rehabilitation?

If you had read the DOE website you would also have found this page.... http://www.ed.gov/offices/OSFAP/DCS/repaying.html

There's no way around the student loans, child support, and back taxes. I would say that your best bet is to file bankruptcy for all your normal unsecured debt - so you can clear your funds for the repayment of the student loans.

Also, a Google search comes up with this page: Discharge/Cancellation. It was 1st choice on a search for "student loan forgiveness due to school closure".