Student loan Wage Garnishment - How can I remove them?

I have a past student loan debt. I graduated from college in 2006 & I believe my loan went into default in 2008 due to non-payment. My question is. what can I do to prevent granishment (cause I "finally" have an interview set up next week) before it begins? I'm almost positive that this interview will end on a good note & I want to try & prevent granishment if I can.

Is it a federal or private loan.

Ok first I wanted to know two things. One if I never contacted the CA back would they have ever found me. The same with giving the CA my employer. If they didn't have that could they start the garnishment process.

Next, I have requested the hearing within the 30 day notice from the CA. How do I prove that I'm paying expenses for my mother who now lives with me after being evicted from her home last year. So I pay for her basic living expenses. Because they are saying they can't go below 1% of the total balance. I want to start rehab payments for the 9 months. But it is too much for me by $200 and they just will not budge. I also have filed for some of the loans being signed by someone else. It is just taking me time to prove my signatures to find signatures from 12-14 years ago.

And if they do garnish that is not part of the rehab program right? I would have to make payments on top of the garnishment correct.

So besides though questions my main one is how to get them down on the monthly payments and all that nonsense about 1%.

Thanks,
Goldy

Loan repurchased by PHEAA. Employer sent me a copy of the garnishment letter. I never received the 30-day letter to appeal the process first. Yes I moved, but the garnishment letter shows the CA received my correct (new) address. CA also verified my e-mail address and phone number prior during a phase where I was disputing the default status as I had applied for a deferrment...

How do you file an appeal based on the fact that you never received the 30-day letter and that the CA had the proper contact info?



I think the whole intent here is to make as minimal communication as possible so they can charge the 18.5% collection costs.

PHEAA paid your default claim. Garnishment notices are usually "address correction requested" which means the post office sends your mail back with your new address. It is your responsiblity to keep your lender/guarantor informed of your current address....they will not resend the garnishment notice. You can appeal but your request will not be processed timely....meaning those appealing within the 30 day period go before you.

You may have applied for deferment but it was not granted in time or at all. It takes 270 days to default....deferment takes a couple of weeks. They probably ditched your dispute.

The 18.5% is charged at 60 days post default. As a general rule, they dont start garnishment until a minimum of 180 days post default.

Anyone else at this point?-Income breakdown 52% for mortgage, 22% taxes, 15 % for garnishment.... Dealing with the ca is like dealing with a small minded communist country. Their story- that they sent a notice for garnishment 30 days prior to action....Asked how they sent notice- they replied "by mail because you don't answer your phone"...interesting when the mail service stopped delivery 2 months prior to my address...and I have no phone. How can these people blatantly lie like this? The fact of the matter is I too, like prior persons on this chat board routinely tell people "NEVER take out a school loans".
Here's the kicker...13k for the original loan amount- which is now at 36k.
This is painful, when a colleague has "0" loans because of her "citizenship status" allowed for a full ride...on my back. Now lets see if there is any hope for some light on this matter...considering over 62% of student loans are currently in default. Has anyone else written their congressmen/rep?

Phone issue....whatever phone they had on file was not answering. Did you give them a new contact phone number? Mail was sent to your last address on file. It is the borrowers responsiblity to notify the lender of their current contact info including address and phone.

What has your collegue's loan got to do with yours? Citizenship status doesnt give her a full ride unless she earned it.

You had the opportunity to consolidate your loans under the income contingent repayment like everyone else prior to the garnishment. It is not the governments responsiblity you are paying a mortgage payment you cannot afford but you did have options....

I'm sure this question has been posed many, many times, but I'll ask again because I am new to the forum. I have been very poor with my money management and have avoided mostly paying for my student loan. Of course, it is in default and the CA has been tracking me down for years. At times they have "caught" me and have made some payments, only to run into some problems with other debts, causing me to stop making payments. Stupid on my part, yes. Now they have contacted me threatening wage garnishment. I make very little money compared to the cost of living where I live. I plan on talking to them this week, but I want to be armed with information.

Is it possible due to financial hardship to get the loan (it is a federal loan) wiped out with bankruptcy? I know you have to prove hardship, and after paying rent, phone, utilities, food there is very little left to pay of the loan. I'm desperate and this whole deal has had me contemplating suicide. Should I contact a bankruptcy lawyer after talking to the CA and seeing what plan they have to offer? They are threatening garnishment, but I don't know exactly how much of my net (or gross) they would take in 2010. Any help or advice would be appreciated. Thanks, and good luck to all those who are in the same boat as me.

Not gonna work.

If you had read the forum, you would know that garnishment is 15% for federal loans. You would have read that you can consolidate, get out of default and get an Income Contingent Repayment based on your income. Read the stickies at the top of the forum...they contain valuable information.

I was really stupid and cosigned on a student loan for a friend. He is currently making payment but they are getting behind. Of course he won't answer my phone calls or emails. I am curious to know if I will receive the same garnishment treatment and have my income tax refunds withheld if he defaults on the loan or if there is any protection for me because I was the cosigner and received no benefit from the loan?

Please help.

You will both be sued first and then garnishment can occur. You are just as liable for the funds as he is....there is no protection.

I don't know if you will be able to answer this but If I as the cosigner take over making payments on the student loan and there is a cosigner release clause, can I be released from the loan if I meet the 24 month on time payment condition and the promamry borrower credit report is in ok shape?

Can I sue to primary borrower for the monies I had to pay on their behalf?

If there is a cosignor release, it has to be the 1st 24 payments coming out of school....miss any or be late, it becomes null and void. There is no grace.

You cosigned of your own free will...you took on the responsiblty without conditions. On what grounds would you sue??

Collection agency has been taking 15% of my net pay for the last 9 months for my "student rehabilitation loan". They said after 9 months it will no longer show in default of my student loan on my credit report and I will go back to making regular payments on my account. My 9 months payment was JUly 25th. I have no heard anything from them. I want to know what's happening and what my payments are going to be. I am hoping they are not going to continue to take the $486 a month from me and I can make a less gouging payment. Anyone have any experience with this loan rehab program?

Sorry, but a garnishment is not a rehab payment.(you are being garnished, correct?) Rehab payments by law have to be voluntary which means you have to pay them yourself, not have them involuntarily taken from your paycheck. Your garnishment will remain. The only way to get out of the garnishment will be to make 9 payments over and above the garnishment.

A couple questions...

Can you negotiate a rehab payment? Or is the payment base on a formula and there is no way to negotiate the payment down?

When doing a rehab payment, do you need to get something in writing? Or, it just standard procedure and everything goes as planned when you are finished after 9 months...

Thanks in advance for the help... This is a great forum and I'm sure it has helped a lot of people...