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.

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.