Student Loan Wage Garnishment

I owe about $24,000.00 student loan including interest and penalty, my part wages are about to be garnised. What should I do to avoid the garnisment.

Pretty simple....you probably received a garnishment notice.....did you read and the instructions on how to avoid garnishment?

I am being garnished. I did respond to the notice and attempted to set up a voluntary payment plan, but they wanted payments that were double the garnishment amount and which I could not afford. Do I have any options for rehabilitation at this point? All I'd like to do is voluntarily repay and enter back into the system. Otherwise, I'm contemplating bankruptcy to stop the garnishment and use that cease-time to work out a voluntary payment plan, but I'd really like to avoid that.

In order to rehab while in garnishment, you need to make payments over and above the garnishment.

During a bankruptcy stay, you cannot set up a payment plan....they will not even talk to you. You go into a BK status, so that idea is no good. Garnishment usually resumes once the bk is discharged.

How many days does it take to enter into default status for them to garish wages?

It takes 270 days to default on your federal loan. Garnishment is not usually pursued for at least 90 post default unless the borrower refuses to pay.

i'm currently 96 days with a past due balance, but i have been making monthly payments based on what they informed me of what i need to pay.

Could they still garnish my wages?

Is this a federal or private loan?

i am about to start making payments to the collection agency 300 a month for 40k balance it is a private SMPC loan can they garnish my checks???

Private student loans will eventually sue you when you are in default and making payments. Whether they proceed with garnishment is up to the agency suing you.

I defualted on my student loan and I owe 4060.25 it's a federal loan and I made arrangements with the collection agancy to pay 50.00 every month, I wanted to know if my tax refund will be taken even though i started makeing payment this june

It entirely depends on the guarantors policy. Being in default they are entitled to your tax refund,although some lenders will remove you from the tax offset list if you enter into repayment. Talk to the CA or guarantor handling your loan.

I have a private loan I didnt know it was overdue undtil it was in collections i offered monthly payments but they said they wanted to whole amount or nothing, now they said they would take payments but sent me nothing I requested in writing- what do I have a right to in writing. Can they garnish my wages? Is there a statute of limitations on collecting debt in MA?

How would you not know it was overdue? Private loans become due 6 months after you seperate from the school. They would have sent out many letters pre default and even more post default. Plus they would have called numberous times.

Your agreed to balance in full on demand upon default. Private loans will sue you before the SOL runs out, so that is not an issue.

Who is the loan thru?

i don't have a job can they steal garnish my wage or take me to court

Obviously they cannot garnish you if you have no job. However they can still take you to court.

I have a private student loan and have gotten alot of conflicting information- can they wage garnish? For how much? Is there anyone who can give me help and advice? It seems there are tons of organizations and websites for federal student loans but none for private. I cant get them to negotiate or send me much in writing... sigh what can they do? What rights do I have?

The loan is now with Williams and fudge- it was a state higher education loan but I guess W and F dont own it they are just collecting for it- It is confusing. How can I avoid getting sued since they wont negotiate i dont have the full amount...

Also the SOL is almost out so I dont know are they going to sue me now? I didnt know the loan was in default because I didnt get any letters saying it was due until it was already in collections- no phone call either- a problem with students who move around alot- what should I do now? Are there any orgs that could help me negotiate something?

How are you calculating your SOL? Student loans are calculted from the default date, not the date of first deliquency.

As for the default, it was your responsiblity to keep your lender informed of your current address per your prom note.

You will have to deal with any negotiations yourself. Student loans do not allow 3rd parties.

I am getting garnished by student loan and have been for about a year now I was wondering if there is any way to lower the garnishment? And do you know if they take your taxes also once you file?

Since you are not paying voluntarily they will also seize your taxes.

You had the opportunity to appeal the garnishment before it started...did you request an hearing? Once the garnishment has started it is very difficult to get it lowered.

I am barely able to put food on my table...have handicapped daughter. I am having over three hundred taken out of my check every month. How can I find out how much I have left on my student loan..

What type of loan? Private or federal?

I have a notice of garnishment on a fed loan. I called collectcorp and they want 350.00 monthly as rehab payments. When I asked for lower payments the rep said it was too late and it'd have to be 350.00/month. I can afford around 150 before it becomes unreasonable for me to pay without hurting myself or my family.and they will not budge on lowering the monthly payments. Total loan is about 55k where the principal is 25k and they are adding 11k in 'fees' and about another 19 or 20k in interest.

-Can the 350/month be negotiated down? Or is the man right? that they can't lower it.
-Once rehab is completed, will these monthly payments come down when the loan is out of default?

Thank You,
Bilbs

Right now, your interest is probably in excess of $300 per month. A $150 payment might be affordable to you but it is not reasonable based on what you owe. And since you are sitting on the edge of garnishment, you may have left it too long. You need to get a payment set up asap for the garnishment will start....you will loose the opportunity to consolidate (which you should have done a long time ago!) and rehab will be completely out of reach

Bilbs

If you can ask them to reduce the fees part which is whopping 11k then it will lower monthly installment.Or else they will start garnishment.But they can not garnish more han 25 % of your income.
keep in touch........

They will not lower any fees just because you ask. Once the rehab payments are completed, FFELP loans discount to the fees to 18% and Direct Loans will waive them completely. However, this does not happen until the funding stage.

Federal student loans garnish at 15%, which does not require a court order.

I've been reading through all of these posts, and I'm still not 100% sure. I think that I've figured out that the federal student loan that I am currently getting wage garnished for cannot be rehabilitated at all?? Is this correct?

No. You can rehab but the payments are over and above the garnishment.

and who would need to be contacted in order to rehab??

I would check with your state to get the maximum garnishment limit on wages. Maybe you can get it reduced and switch the garnishment to voluntary payments. I am not to sure but I believe it may be possible. As for your federal and state tax returns, they can take it all being that a student loan is a federal debt. They can also take your stimulus as a result of the debt.

Sit tight, more will along to help out ;)

Student loan garnishments are federal and override state laws.

You will need to contact the CA or agency who is garnishing you.

Thanks a lot for your reply's, i really appreciate it.

What is the "CA"??

And the 'agency' would be the government? or the last debt company that had my loans?

Collection agency = CA
Agency is the guarantor...the company who holds the loan right now. They are the ones who hired the CA.

i just found out that i didn't submit my paperwork in to start my papyment plan they told me I had to add my last name when I did the paper work so I faxed if over again and they told me everything was fine and then I called to make my next payment and they said I didn't add something so they are garnishing my wages it is now Nov. 09 can they take my whole income tax too?

If you are not in voluntary repayment, then yes they can garnish your wages and your tax return.

my pay is being garnished and from time to time i grab a second job and the second job doesnt get garnished within the first 2 months at least. so there is a little play before they begin to garnish a new job.

My salary is being garnished by a debt collector on behalf of a private student loan company. I can't affort what is being taken and I have decided to leave my job in search for a new one. Do I have to option to renegotiate with the debt collectors, and how long will it take them to get to garnish my new job salary?

If this is a private loan, then they have a judgement against you. Judgement garnishments percentages are set by state law.

In this economy, I would not suggest leaving any job until you have an offer for a new one.

How long will it take to catch up with you again? Hard to say.

Hello... I'm a single divorced dad of a teenage daughter. I, like the guy above, did not receive any letter(s) of notice of garnishment, also... they have been taking my tax refund for the last 20 years. My original loans were for a total of approx. 13k. My average annual tax return the last 20 years was approx 1200.00/year with the EIC.
My last, and first in many years, conversation with this new loan company that bought my loan, said that it's up to me to prove where my tax return money went but from what I'm reading it's up to them to provide me with a statement of where my money went. The balance has icreased over the last 20 years even though they have garnished approx 24,000.00-30,00.00. Now, they are garnishing 15% of my "disposable income". I only make 30k/year and this is making it next to impossible to even pay my basic bills. What can I do?!!! HELP!!!!! PLEASE!!!

It all comes down to simple math....$13 k in original loans. Back 20 years ago, interest ranged fro 8-12%. Non payment results in late fees and accrued and capitalized interest. When you default, they tacked up to 24% in collection fees. Your $1200 tax offsets were probably not even covering the the yearly interest.

Your loan was more than likely a FFELP loan, guaranteed by a state agency. Eventually the loan was more than likely subrogated by the US Department of Education. It is not bought per se....it is taken over by the fed's. Letters would have been sent each year.
Technically it is NOT up to the DOE to look up all your tax offsets prior to them taking over the loan....that is YOUR responsiblity. They will only have record in their files of what they got. You would have to go back to the prior guarantors to get copies of your records.
As for the garnishment, it was your responsibility to keep your loan holder informed of your current address and phone. A garnishment notice would have been sent your last address on record. Without a response, you left them no option. Your income is well above the minimum and they are not going to show a lot of sympathy. You can try to appeal but I wouldnt expect much of a change. They will suggest picking up an extra job or cutting back on your bills.

In 2005, my wife co-signed for her daughter through Sallie Mae, this is a private loan. Her daughter cannot repay and is disabled and receiving disability payments, long term disability, she stopped paying last year in September. Since my wife is the co-signer and if the loan goes into default, can they go after tax returns (joint tax returns, hers and mine) and go after our home, she is not on the deed or mortgage loan, just me. Could it be a lien? We live in California.

Private loans cannot attach tax returns because they are not federal loans. Your wife and daughter will probably be sued. However you may want to talk to an attorney as california is a community property state and I am not sure how that will play out.

I have a loan through Ed Fund and they are now garnishing my check. I did get the garnishment notice and I submitted the appropriate paper supplied and requested an appeal. The debt that EDfund is attempting to collect was consolidated through Citibank. I mailed the paper work back in 02/2009 advising them so and they have still proceeded to garnish 15% of my check. I have since submitted an additional appeal to the U.S Department of Education AWG Hearings Unit.

Do I have any other options? The debit EDfund is attempting to collect Citibank is saying they paid once the consolidation was processed.

Have you looked up your loans on NSLDS? Called Edfund?

When did your consolidation go thru? Are you making payments on the consolidation?

May wages are been garnished if i change jobs will it takk them awhile to find me.

Sometime they find you within a couple of weeks, others couple of months. They can get info thru the IRS and state agencies.

I have been making monthly payment to a collection agency since 1999 by way of post dated cheques yearly. In january i sent 11 cheques, then in February i received a letter saying they had informed Revenue Canada to garnish my income tax return , and of course it was garnished. THEY are still harrassing me for payment. What should I do?