Private student loan default

John F...if they are sucessful in getting a judgment, they will not warn you when they will seize a bank account...think about it...they want to collect money and they wont give you a chance to take it out first.

As for buying the note, if it is already in default, no one will want to buy it. Only federal loans have that option.

So i will get some type of notification on a judgement via mail before they can levy my accounts that they do not already have access to?

they will send a letter at some point questioning if you have exempt funds...social security etc. After that they will find your bank....

Hi john,

This is to let you know that you have to check it in the website for a company that can consolidate your student loan debts.As student loans are a part of the federal law not a lot of companies consolidate student loans!!!!!!!!!!

This is a PRIVATE student loan...not governed by federal law. Totally different situation.

I read that Delaware based banks will not allow bank seizures and certain states will not allow wage garnishments.

Correct..TX, PA, NC and SC are non garnishment states. FL is non garnishment for head of household.

We live in PA, and my wife is being garnished (and has been for the last 4 years) due to a default student loan.

Federal student loans can garnish in all states under the federal administrative garnishment rules. Student loans fall into the same category as the IRS and child support.