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Student loan Wage Garnishment - How can I remove them?

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Hi, my student loan (previously held by American Student Assistance) is under wage garnishment. I called the collection agency a couple times. They requested that I send them an itemized list of monthly bills, but have not heard back from them and the garnishment started this week. I continue to call but they do not return my phone call. What can I do to have the Wage Garnishment removed? What are my options? Is there another company out there that can assist me with improving this situation.


Try to figure out some other contact number for them. You can search BBB and check if they have any additional address or not. Also try to contact your lender, if they can help you get an address. If all fails, contact ED's Administrative Wage Garnishment Branch (AWG).

Also go through this page to know your options and rights with wage garnishment " fices/OSFAP/DCS/awg.html"
Try to get your loan rehabilitated; this is good for your credit too.

Sub: #1 posted on Tue, 03/14/2006 - 12:28

Alex_Zee Alex_Zee

(Posts: 92 | Credits: )

They requested that I send them an itemized list of monthly bills

Have you sent what they requested? It seems they tried to figure out your monthly expenses.

Your creditor is required to send you a notice about the garnishment and you have an option to dispute it with US Department of Education as well. Once you place the dispute, garnishment cannot take place.

Once you can contact the collection agency, ask for Rehabilitation as alex has said above. Rehabilitation could be helpful for you. Keep us posted.

Sub: #2 posted on Tue, 03/14/2006 - 14:05

stanley stanley

(Posts: 1639 | Credits: )


For you to get out of wage garnishment and back on your feet, talk to the agency that is holding your loan. They will help you figure something out. You could pay the balance in full in 1 to 6 payments, or settle for principle and half interest in 1 to 3 payments, or rehabilitate your loan. In order for you to get out of garnishment with a rehabiliatation, you may have to tighten your belt for a six months, because that's how long it will take for the garnishment to life if you choose to rehabilitate. There is a topic about loan rehabiliatation in this forum that you should read up on. It's the best remedy for you credit. If you have any questions, I'm happy to help you out.

Sub: #3 posted on Wed, 04/12/2006 - 19:38

Jedi Mistress Ari Jedi Mistress Ari

(Posts: 2192 | Credits: )

Tax Offset and Wage Garnishment
If you default on your loan, the U.S. Department of Education has the authority to deduct money from your income. This may happen through tax offset or wage garnishment (or both).

Tax Offset. The Department of Education may offset, or withhold, money from your federal income tax refunds to collect on defaulted federal student loans.

If the offset of your federal tax refund creates a severe hardship for you, it is possible to request a refund. Examples of extreme hardship include very high medical expenses or the threat of eviction from your home. To request a refund, you will need an explanation of why the offset is causing an extreme hardship, a copy of your income tax form and other proof of income, copies of your monthly bills, and, if possible, copies of the bills that represent your case for extreme hardship. Send this information to your guaranty agency.

Wage Garnishment. If you are in default on your student loan, federal regulations and law allow your guaranty agency to garnish up to 10% of your disposable income, or the U.S. Department of Education to garnish up to 15% of your disposable income for repayment of your student loan.

Sub: #4 posted on Sun, 10/22/2006 - 06:32


(Posts: 1245 | Credits: )

I had my wages garnished for 6 months and made no headway with the CA. they did not care. I finally requested a hearing with Dept of Education in writing. They sent a copy of everything I sent them to the CA. The CA came back and told me too bad, but the Dept of Ed held the hearing and decided I should not have been garnished. They sent a stop order! I then consolidated my loans directly with Dept of Ed. the CA told me too bad I was not able to do that. My loans were consolidated and the payment was reasonable - much better than the garnishment. Point is know your rights because the CA's just want to make money.

Sub: #5 posted on Sun, 10/29/2006 - 14:13

dmack dmack

(Posts: 16 | Credits: )

That is good news dmack! Others will benefit from this! :D How long did the process take with the Dept. Of Ed.?

Sub: #6 posted on Sun, 10/29/2006 - 14:19


(Posts: 5263 | Credits: )

From the time I sent the request to Dept. of Ed until I was notified that a hearing had been held and that my garnishment would be stopped was only a month. The loan rehab program is not for everyone. once my loans were cosolidated they showed as "paid" on my credit reports and I now have so much flexibility. The only thing I didn't know was that the hearing would be held without me. So the more informationyou send the beteer. You have several options, you cannot be garnished if you are unemployed, or were unemployed within 12 months preceeding the garnishment. The CA's will not tell you any of this! I bought a book about managing student loan debt and there was a wealth of info. in there. If I had bought the book first I would not have gone the rehab route. The payments were way too high and the CA was very unpleasant. They found me by pretending to be doing a reunion for my college.....I learned a great deal in this process.

Sub: #7 posted on Sun, 10/29/2006 - 14:47

dmack dmack

(Posts: 16 | Credits: )

it is my understanding that if you as little as 50.00 a month/ every month that they can not garnish your wages.

If you don't mind me asking, were you not paying anything at all and it went into default? Is that why they are garnishing your wages?

Sub: #8 posted on Sat, 12/02/2006 - 07:02


I was paying 100 per month and the collection agency wanted 15% of my net incime, when they garnished they took 14% of gross

Sub: #9 posted on Sat, 12/02/2006 - 10:50


I have been told over and over and over again that if you pay something they will not garnish you. Or that is what Jedi tells me anyway. See, why I have so many questions.

Sub: #10 posted on Sat, 12/02/2006 - 11:58


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