Student loans, Allied Interstate, etc.

Alright, so I've gotten myself in deep trouble with my student loans.
They are in default and are being handled now by Allied Interstate. I
have been ignoring the problem and am forcing myself now to sit down
and deal with it, but I don't know where to start.
Allied has called
one of my employers multiple times and most recently has told my
employer that they will be garnishing my wages. Is this legal? They
have not sent me anything about this, I had to hear it from my
employer.
I just need to know what I should do first. Call Allied? I don't know what to say. Can anyone help?

Yup...it is called administrative wage garnishment. Your employer has probably been sent the paperwork.
Does Allied or your guarantor have your correct address? Are you reading your mail? A 30 day notice would have been sent to you.

Yes you should probably call allied to find out where you are at in the garnishment proceedings.

I just spoke with the Default Resolution Group, who confirmed that Allied is handling my defaulted loans. The man I spoke with said that his records show that garnishment has not begun. I haven't received anything in the mail from Allied. I was receiving letters from West Asset Management, but the loan was transferred to Allied January 24 08. My employer told me that Allied called him many times requesting my SS#, his SS#, his tax ID #, etc etc. My employer would not give him those things. I believe the last time he called, the guy from Allied said that he would send my employer the garnishment paperwork. The weird thing is that the employer who has been getting these calls is not my main employer... I only work there once a week. My full time job has not been contacted, even though I have worked there several years and have filed income taxes which state both employers addresses, phone numbers, etc.
I guess my main question is, what information should I have available when I contact Allied? What should I expect?

I was doing some research online and several things I've read have indicated that it is best not to call creditors to set up payment plans. That you should do all of it in writing. But then other people have said that CAs are notorious for not responding to letters and losing them, etc. Not sure what I should do.
If I call and set up a payment plan, should I give them bank account info over the phone? Is that an invitation for them to empty my bank account? What is the protocol here?
Thanks for your earlier reply SOAPLADY, I appreciate it.

Good news. I contacted Allied interstate and contrary to everything I read, the representative I dealt with was extremely polite and non-threatening. I am working out a loan rehab progam with her. Feel much better about whole situation.

Allied may be a terrible CA, but their student loan division is very very different. CA's that handle student loans have to follow different policies

Student loan negotiation is always done over the phone...they will not negotiate via the mail.

How much would my monthly payments be to Allied Interstate on a $12K defaulted federal student loan? My monthly income after taxes is around $2800.

There is no set payments on student loans...when you default your entire balance is accelerated and becomes due in full immediately.

You might wasnt to look at rehabbing or consolidating. Read the stickies at the top of this forum.

WV,

Thanks soap lady! I was able to rehab and negotiate two monthly payments of $300, then my monthly payment will go down to $120. Your advice is greatly appreciated by me and everyone else who visits this forum.

it seems the more you pay the amount never decreases.....

As long as you are paying more than the monthly interest charges, your balance will go down..simple math.

I've just started dealing with A.I. and it's hard to get a legitimate person on the phone. I have to give so many different people my SS# and have to wait for a callback other than that A.I. is working to get my loans out of default and i will be returning to school in January. A victory report!!!!

Are you rehabbing or consolidating?

I am in Texas. i have talked to my lawyer in Fort WOrth. He handles debt collections. a debt collection company CANNOT tell your employer that they are garnishing an emplyees wages, this is a violation . Even if a debt collection company is trying to collect a student loan, they cannot break the law themslves. whoever writes for this'ask an expert ". site is wrong to say a collection company can get by with this. There is no statute of limitations on a student loan, but the collection agency cannot break a law themselves. they are telling someone else your business, and that is breaking the law. Even if it is a student loan. Get your self an attorney. if you are in this position, do not listen to who ever writes for this website. Go teh website of Budd Hibbs in fort Worth Texs. He helps people with debt problems. he wroks with attoryney Jerry Jarzombeck. Allied Interstate is a scuzz bucket agency that has been sued for illegal tactics. Just becuse they collect student loans does not make them exempt from state and federal laws involving debt collections doing illegal tactics..

Sorry, but your attorney is DEAD wrong. Collection agencies can garnish for federal loans under Administrative Wage Garnishment...it is authorized by congress http://www2.ed.gov/offices/OSFAP/DCS/awg.html

No court order required, wages can be garnished in ALL 50 states including Texas. Maybe your attorney should research before he gives out advice.

I will accept your apology now.