Student Loan Wage Garnishment

Date: Thu, 03/25/2010 - 22:34

Submitted by Thomas Allen
on Thu, 03/25/2010 - 22:34

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Total Replies: 3

I am in default of a student loan. Through job layoffs and attrition, I simply could not pay it, so it naturally defaulted. OK, I get a called from FMS and got letters as well telling me about a loan consolidation plan that would get the student loan out of default. The agreement was that I make 9 consecutive payments. I had it set up where it was automatically being debited from my account....$150 a month. I made 7 consecutive payments.....7 MONTHS. I was furlowed (a nice way of saying laid off) and soon after, my bank account was in the negative and ALL of the online bill pay accounts I had were bouncing because I simply could not pay the bills. My bank account was closed....CLOSED because there was no longer a direct deposit going to that account and I had no way of paying the now $900 that my account was showing delinquent. Show Sun Trust naturally closed the account. I called FMS and let them know my situation. I was at 7 payments. I was out of work for a couple of months. I finally get back to work and within 2 months, I get a call from my employer saying my wages were going to start being garnished by FMS at 15%. That is absolutely killing me. What is more frustrating than anything else was I was never offered a chance to start over with the loan consolidation plan...seeing as I had honored our agreement all the way up to me being laid off. So now my wages are being garnished and have been garnished for 8 months now....for far more than the agreement I originally set with them. What can I do?

You could try to speak with the loan people directly (not the co

You could try to speak with the loan people directly (not the collection agency). Unfortunately it may be too late in which case there is nothing you can do. You should have spoken to the loan people directly before you defaulted, they do have harship and deferment programs...I was in deferment for like 15 years on mine until something happened to my deferment paperwork, I moved and never knew I defaulted...next thing I know my husband's tax return was taken to pay the student loan.

lrhall41

Submitted by goldenbast on Thu, 03/25/2010 - 23:17

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Try contacting your lender directly to request a hearing to appe

Try contacting your lender directly to request a hearing to appeal the garnishment. Get a name and establish a working relationship with them. It's not easy to do, they hung up on me several times, but it will really help you. Try to work out a voluntary payment arrangement. If you get this voluntary agreement, the garnishment will cease. They can actually do this immediately. But it is important to try to get a relationship with them. They need to know you are more than just a number and someone who flaked on paying their student loans. Once this is worked out, consolidate your loans through Direct Loan Consolidation. You should be eligible as long as there is a voluntary arrangment worked out. They will buy your loans, which will take it out of default. You will have a brand new loan with them with new payment terms, deferements and forebarances., If all else fails, you can get an ombundsman(forgive the spelling) thru the Dept. Educ. they settle disputes between customers and lenders. Their service is free. Hope this info helps good luck.

lrhall41

Submitted by on Tue, 04/06/2010 - 18:04

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Sorry, but you have to appeal with who is administering the garn

Sorry, but you have to appeal with who is administering the garnishment. The lender has already filed the default claim...the guarantor would be the holder but since the CA is hired under contract, most guarantors will not even talk to you. Your appeal is suppose to be done before the garnishment starts, not after. And people should look at rehab first, not consolidating.

lrhall41

Submitted by SOAPLADY on Tue, 04/06/2010 - 18:36

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