OK, I got a few student loans totaling approximately $8,000. I got the notices it was being sent into default, etc. after my grace period. Today, I received a call giving me their full speech about being able to wage garnish, etc. Also, that they would start garnishment proceedings if I didn't contact them within two days. They got my information, the fact I'm unemployed, and offered me a monthly payment of $85. They wanted to set me up on an automatic withdrawal program and I explained that I don't have a checking account only a pre-paid debit card because of other credit issues. Now, I've read a lot of the forum but I still have a few quick questions.

1.) I filed my taxes a few days ago. The little thing on the IRS site says my refund check will be direct deposited next Friday (1/20). Now, will they be able to grab that even though this is the first time the CA themselves have contacted me? I realize they can do it pretty quickly because it's a student loan, but is it that quick?

2.) I just want to make sure I understand the process. I make my 9 $85 payments to the CA, the loans go back to the government and that point, I can consolidate and go on to the IBR program, correct?

Thanks.

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Your student loan loan didnt default after your grace period. It takes 280 days (9 months) Just as an FYI, you could have deferred your loans for many reasons, unemployment , financial hardship....these deferments can run for many years.

1. It is very possible that there is a lien against your taxes. Call the IRS directly.
2.Correct.

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