Student Loan Default Conflict Resolution
Date: Mon, 05/23/2011 - 21:20
Oh, I should also add I received a letter a few weeks ago that w
Oh, I should also add I received a letter a few weeks ago that wage garnishment was going to start if I didn't contest it (though no CA was listed in it). Anyhow, I make about $225 a week gross and about $150 after taxes and deductions. The wage garnishment they have been allowed to take out only comes to $1.72 a paycheck! That's got to mean something with respective to my financial position as a bargaining tool to cut a deal because of how little I'm legally considered to be able to pay..
FYI..all student loans are collected out of Minnesota...that is
FYI..all student loans are collected out of Minnesota...that is their student loan division.
Quote:
Someone suggested I contact Sallie Mae directly and try to negotiate a deal with them for even less as that 11,000 includes a cut for Allied and Sallie Mae might very well strike a deal directly that would be cheaper for me and in turn mean more for them. So either of these scenarios are actually a positive outcome in respect to that loan. |
Nope, wont happen. Allied is hired under contract by Sallie Mae. This contract includes non involvement by Sallie Mae without cause. Allied gets paid their commission for the period of the contract regardless of where the payment is sent. Thus Sallie Mae stays out of the collection loop....they are paying collector to collect it.
Your federal defaults...IBR or income based repayment is a payment plan you are not eligible for in default. When you default, all deferments and forebearances are gone....there are no payment plans per se you are eligible for. The collection agency may set you up on temporary payments for rehab or heading to consolidation. Were these loans ever consolidated? Unfortuantely you would not be eligible for the consolidation now with the garnishment.
Your income. Why on earth are you paying taxes if you only earn $10k per month? Adjust your withholding to exempt.