Internet's first get-out-of-debt community - members

DaniB. · Posted: Mon Mar 13, 2006 7:38 pm

Can you help with a student loan that has already defaulted and is now a garnishment?

Posted: Tue Mar 14, 2006 12:51 pm

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 .You can get more information on Rehabilitation from here �

http://www.debtconsolidationcare.com/forums/rehabilitation.html

Posted: Tue Mar 14, 2006 3:11 pm

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.

DOE /AWG processer · Posted: Thu Mar 30, 2006 12:29 pm

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

DOE /AWG processer · Posted: Thu Mar 30, 2006 12:32 pm

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.

Posted: Thu Mar 30, 2006 3:20 pm

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

Posted: Thu Apr 06, 2006 6:34 pm

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.

mwtx · Posted: Sun Apr 09, 2006 11:20 pm

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.

Posted: Wed Apr 12, 2006 7:40 pm

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

leathene · Posted: Wed May 03, 2006 7:28 am

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

Posted: Wed May 03, 2006 6:54 pm

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.

yogi · Posted: Tue Dec 11, 2007 3:47 pm

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

Posted: Tue Dec 11, 2007 8:40 pm

Posted: Wed Mar 12, 2008 12:00 am

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.

Posted: Wed Mar 12, 2008 8:01 am

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