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 Posted: Thu Apr 17, 2008 1:53 pm Subject: Student Loan Default |
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I need advice before I sign anything. Just found out my 20 year old student loan has been in default since I started making $50 payments more than 20 years ago. Unfortunately, I don't have that in writing. Now it's with allied interstate - wages are about to be garnished/IRS refund garnished. My original $13000 loan, of which I've already paid over $14000, now has over $24000 owed. First step should be? Any way to fight this? Thanks.
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Lsleaves
Joined: 17 Apr 2008
Posts: 1
Debtcc Points: 22
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| Posted: Thu Apr 17, 2008 5:24 pm Subject: loan |
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Do you know who the OC is, for this loan? I mean, who did you have this with? Maybe you can call the place where you had the loan started and explain your issue/situation. I've dealt with this too. I had a Student Loan in default, at one time. I did alot of paperwork and 'my homework' and got the loan back into a 'good status'. It is difficult to do, I will tell ya. Also......legally, the IRS can take the loan out of Refunds, etc. that are 'due' to you. Please give me an update. Thanks.
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sdchargers_63
Joined: 08 Aug 2007
Posts: 1152
Debtcc Points: 11110
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| Posted: Thu Apr 17, 2008 5:28 pm Subject: loan |
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...also, I wanna add, if you are married ( don't know if you are OR you can give this advice to someone you know), you and your spouse can file seperate tax returns...'Married Filing Seperately'. This way the default will not 'affect' him. Hope this helps a bit.
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sdchargers_63
Joined: 08 Aug 2007
Posts: 1152
Debtcc Points: 11110
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| Posted: Fri Apr 18, 2008 1:20 pm Subject: |
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| Quote: | | I need advice before I sign anything. Just found out my 20 year old student loan has been in default since I started making $50 payments more than 20 years ago. Unfortunately, I don't have that in writing. Now it's with allied interstate - wages are about to be garnished/IRS refund garnished. My original $13000 loan, of which I've already paid over $14000, now has over $24000 owed. First step should be? Any way to fight this? Thanks. |
Your $50 payment is not even covering your interest. By my calculations you are accruing about $150 per month in interest charges alone. To rehab you would need to make payments of approximately $240 per month or be able to come to some agreement on reasonable and affordable. However, neither the DOE or Allied will consider $50 as reasonable for that size of debt.
If they have sent you the wage garnishment notice, make sure you return it ASAP or they will garnish 15% of your disposable wages.
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SOAPLADY
Moderator
Joined: 07 Feb 2007
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| Posted: Sat Apr 19, 2008 1:46 am Subject: loan |
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See what you can do to make arrangements. Most places are pretty good about 'working' with you....bringing your loan out of default, that is. Please let 'us' know an update. Hope you can get this taken care of.
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sdchargers_63
Joined: 08 Aug 2007
Posts: 1152
Debtcc Points: 11110
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