Student loan Wage Garnishment - How can I remove them?

more than a bit confused and need a little help. I had a student loan out for a 4k that went into default and they have now attached a wage garnishment. I don't mind them taking it directly out but the amount is pushing into not being able to cover other bills. I did call the DOE who instructed me to fill out "hardship" papers and submit them for review. My question is how do they base a "hardship" my scenerio in a nutshell

$2280 per month income

$423.00 car loan
$520.00 day care expenses
$300.00 per month food *for me and my 2 children
$600.00 per month rent *im staying with someone so electricity and cable are included in this
$100.00 cell phone bill *i dont have a house phone because i stay with someone
$125.00 per month parking lot fee *since i cannot afford the insurance right now i had to take it off the street
$140.00 per month transportation to work since i cant drive my car!!!

I'm barely making it with this and now they are taking $440.00 per month out in garnishments... is that considered hardship? i can squeeze $50 a month but the 400per month will have me screwed...

any insight or advice is greatly appreciated

thanks again

You will have a hard time justifiying the car payment, parking fee and transportation costs.

Your parking fee and transportation>>how much is monthly insurance? You are paying out $265 a month here.

You would have had the opportunity to appeal the garnishment prior to the garnishment starting....a letter was sent to you. Did you not return it?

It is possible you will get a payment plan....I dont know about $50/month .

Yes my car note a month is 423.05:(
insurance for my car was quoted close to 350 per month for where i'm living now. so i went the cheaper route by taking it off the road and until i move and then i'll be able to insure it for cheaper. I dont mind f they cant drop it to 50 a month but that 400 a month is killing me big time...I contacted them and they said they sent a letter to my old address but i had since moved so i didnt get it and I carelessly did not update my address with them. I am not trying to get out of paying it i just need to have them lower it so i can survive.... thank you sooooo very much for your help

Shaneequa, please refrain from posting the same question in multiple threads. It becomes confusing to all involved.

sorry, i will delete it from the other thread

I received a letter saying there going to garnish in 30 days I called the dept of ed and they keep referring me to the CA

I f I set up a voluntary payment plan before the garnishment goes in affeact can I eventually go back to direct loans and deal with them??

You have to follow the directions on the letter exactly which usually means sending in an appeal in writing. If the DOE refers you to a CA, you must call the CA.

It is not just a matter of setting up payments....your loan is in default. You would have to get into repayment and then either rehab or consolidate before your loan would go back to Direct Loans

the CA said after 9mos I can go back and make arrangements with them

Is this a rehab he's offering me??

Yup, thats what it sounds like.

thanks for the quick reply soap

I just received the 30 day letter before the garnishment If I request a hearing and mail back what is the next step


Does this delay the garnishment??

thanks for the quick reply soap

I just received the 30 day letter before the garnishment If I request a hearing and mail back what is the next step


Does this delay the garnishment??




Anyone know the answer??

When my financial counselor at the college informed of the loans I would be eligible for I informed them not to sign me up for anything I need to pay back because I could not affor it. I find out I owe Wells Fargo over 15,000.00. Today (12/14/20) I found out from payroll that my wages will be garnished. I am 64 years old, a receptionst and bring hom like 721.00 twice a month and they want %15 percent of that. Also I informed the representative that I could pay $25.00 a month she said that was not enough. We wen over my bills and she informed me that my bills was already way over my income.In my neighborhood your mail may be put in your box and it may be put in someone else's box that has an address close to yours. How Can I get some help

Sounds like you are being garnished for a federal loan. Somewhere along the line you signed the loan documents and letters would have been coming to for quite awhile both pre and post default.

If you have multiple loans from multiple lenders, how much can they each garnish once the loans are in default?

WOW Soaplady while reading about what I could do I ran up on your comment and the truth of the matter is that I did move and did not get my mail until months later but by then the garnishment had already started. When you are young and start your loans who really read the fine print or listen when they are reading all that stuff to you so I never even thought to call and give them my updated address. Actually I have moved and changed my number several times and they were never notified but seemed to always find me but some odd reason this time was different. Anyway I need to stop this garnishment because it is really putting a strain on my household bills. I have 2 ill children that need ongoing medical attention and it is getting pretty difficult to maintain my home with what I am bringing home now. I don't thing the Rehabilitation plan sounds like a good idea but I am open to other options that will work for me. I will pay monthly but they are taking more than I can spare at this point.

It is and has never been their responsiblity to track you down....your responsibility has been to keep them informed of your current address and phone.
You can appeal the garnishment and you will need to provide a complete breakdown of all your bills...they will take into account, rent/mortgage, car payment/insurance/transportation costs, utilities, food, daycare,medical expenses....they will not take into account credit card payments or any other personal loans....basically only living expenses. They may reduce the garnishment amount based on this review.

I am well aware that it is not their responsibility however most of the time you can't remeber to contact everyone when you move but they could have found me if they wanted to but that's now water under the bridge.....Now if I appeal how long will it take for the garnishment to stop if approved? The bad thing about it is that they started taking the money out of my check right before Christmas and I have to shop and pay bills on limited, extremely limited funds.....I have multiple loans so how can I be sure that all my loans are consolidated if that is one of my options. I'm asking these questions because I really don't trust the CA nor my lender because I found out that all my loans have not been consolidated when I was told last year they had been.

With student loans you have to make it a priority....they have too much power to access your income.

Your garnishment wont necessarily stop...they may just lower it. And the people who have appealled on a timely basis (within the 30 day appeal window) will be processed before you...ie....you keep going to to the back of the pile. It could take 30 days...it could take 90 days or more depending on their volume. Christmas is not a priority for them....it is just like any other work day or month.

The CA or lender hasnt done anything wrong....they only work the loans they have been assigned or asked to consolidate....if you had others out there, you should have verified prior to consolidation. They would have given you the NSLDS website address to check your loans too.

You need to log into NSLDS and find your loans.'

While you are being garnished, consolidation is not an option,.

I just recentley got a paper in the mail to garnish my wages. I needed to either fill the papers out or call and make repayment arrangments. The papers consist of sended a copy of my bills...but i talk to a person from the loan company for my student loan and he said that, if i send those papers in and they deny my dispute. I would automaticly go into wage garnishments. So i made arrangements, well they told me the minimum that i could pay which is 227.00 a month for 9 months without being late and that would get me off the naughty list.

The Higher Education Act required you respond in writing..the paper should state that you need to respond IN WRITING within 30 days ... read the wording on the letter.

I've read through the threads and still have a question. A collection agency is allowing me to pay $650/month to avoid wage garnishment on my defaulted, unconsolidated loans from the National Student Loan Program. At the end of 9-12 months of prompt voluntary payments, I was told my loan will most likely be purchased by a new lender and at this point I can consolidate and negotiate the loan, go back to school and even work out a longer payment period with the new lender, significantly dropping the amount owed each month. That's the part that's hard for me to believe. What would a new lender gain from allowing me to stretch my payments to 25 years and pay less each month? Thank you in advance for any advice. I am weighing paying the $450/month garnishment for 10 years versus $650 month voluntarily.

What they told you is correct...it is called the default loan rehab program authorized by the Higher Education Act. When you consolidate it will more than likely be with the Department of Ed's Direct Loan program.

What would the lender gain? Interest for one....and the fact that it is guaranteed by the feds.

Soaplady, please help. Just the facts, student loan defaulted & now wages are being garnished. My only attempt to make payment arrangements with the CA was not good, they were beyond nasty and would not permit me a few days to get the money to keep my defaulted loan out of garnishment, deadline was at an end. My hopes of purchasing a home just went down the drain. Is their anything I can do? Will the US dept of ED permit me to work directly with them to do a rehab? I can't work with those nasty people at the CA. My loan was on deferment before they got it (CA), but due to my oversight & not speaking with the lender to make arrangements I missed an important opportunity. I now have a better income & am married with 2 kids. We just started looking into improving our credit & saving for a house, now this has blown that dream out. My husband is very optimistic but i have lost hope with this cause everything I have read has demolished my dream of being a homeowner, as if there is no way to get the wage garnishment reversed. I do not quilify for any of the other stuff, but I need to know can I rehab after it has gone into garnishment. What can i possibly do?

For starters...it takes 280 days to default on a federal loan, so your loan would not have been in deferment right before the CA got it. You would have received several notices post default plus a 30 day notice giving you the opportunity to appeal the garnishment based on hardship.

In order to rehab, you need to make payments over and above the garnishment.You will need to contact the CA to set this up....the DOE will not work with you. How much do you owe?

Soaplady this is the 1st Lady responding to your question. I owe, from what they say now, a little over 50,000. I have no clue as to what I am doing or how to get started to correct this, if possible. Please tell me what steps i need to take to get a better handle on this and get this under control to get cleared. The amount i know is from interest & the CA fees. I just got the garnishment letter 2 weeks ago. I'm sure they did all the correct stuff, but it was failure to follow up in a timely manner on my part. Where can i begin to rectify the situation so it will not totally destroy the credit i am trying desperately to clear from my good ol college days. i know it will suck but i am willing to do what i need to get this cleared up as much as possible. Please give me a layout of my options. Please make it as plainly as possible, i was unfortunate to not have anyone to advise me of the consequence of accepting loans, but i wanted an education. My mom didn't know much about the details of lending but she pushed me to do better than her and my dad. She never wanted me to work in a factory. It took me some time, probably longer because of extras of life, but i have now grown, a lil late, but i have grown and i need to get this handled. Tell me as bluntly as possible, I have thicker skin. I messed it up and I need help & guidance on how to settle & better manage it to get out of default and our of wage garnishment. I believe I can work with the CA, but how do i get them to understand that, yes i messed this up, but i am now trying to correct it so it will not affect the future i am now attempting to have.

The fees are NOT CA fees...your guarantor added the fee's up to 24%..the CA only gets about 9%.

Have you responded to garnishment notice as instructed in the letter? I am assuming you received the 30 day notice.Respond in writing and call them. With a $50k balance you would be looking at a payment of about $500 per month. If the CA wont allow you to make these payments, contact the student loan ombudsman ASAP.

I responded but not in time. I got the wage garnishment notice from my employer two weeks ago. What can I do from here, anything or nothing? They should start taking it out of my pay on the 1st. I am salary and get paid once a month.

Only thing left now would be to rehab which means making payments over and above the garnishment for 9 months.

My pay is being garnished by Financial Assests Management. I have asked numerous times for a statement but I was told that they do not have to send me any statements. I cannot find an attorney to help. They will not take a payoff amount so what can I do?

Soaplady, what is the percentage for above the wage garnishment in rehab, if there is one? Or will the CA set the amount that I will have to pay?
2) I know i will need to contact them but will it be the same amount or will it be a little lower?
3) I have the final notice with the amount of my loan. How would you recommend I keep up with payments & rehab. If I request a written copy of the rehab agreement will I get it?
4) Just want to know, moving forward, how I can take care of my debt and not allow this to happen again? I figure once I get this under control then I will begin work on my credit score.
5) Also, What is the timeframe from making the rehab payments to when it will clear my credit?

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Soaplady, I just want to thank you for taking the time to answer my questions. I appreciate the time & effort you & others like you, take to assist people with these type of issues. It's nice to know people who know things.

i had written in earlier in regards to questions about this. CBE group attached a wage garnishment on me. I had to file for an appeal hearing for hardship and was approved. They mailed the letter to my employer on 1/13 to stop the garnishment so now it's just a waiting game. I hope it kicks in before my next pay period because it has been hectic trying to juggle bills. thanks to this site atleast i knew the steps to take....

What payment plan has been set up for you? Or did they just reduce the garnishment?

I went through this last year with my husbands student loan and I sent in a hardship. lots of paperwork with all my bills and they give us our income tax money back. dont lose hope, you can do something...:p

you are better off taking the 15% wage garnishment. and pay off loan of 12,000 withing 3years. they wait until yowr loan is in default for several years when they could of taken the wage garnishment along time ago if you defer it mean they will have you under thier wing owing money for about 30 year or your whole life. and remember interest can be used a tax time as a write, off these are things we all should no but they never do. they want to keep you forvever

:pI truly feel sorry for people who have student loans. There are too many people who went to school and were promised 95% job placements but then the schools either changed and were bought out or went bankrupt also the bank that loaned money got to go bankdrupt , the laws needs to be changed for student loans especially if you dont get the job or ways to get a job that were promised under alot of these schools such as medical assiting schools and then they dont pay the money you were told they would pay. That is problablyh more than half of all student loans. Somethng needs to done about this.

The lenders do not promise job placement so your arguement has no merit. You borrow funds to go to school...the school is the party making the promises so you would need pursue the school if you do not get a job. You make the the choice of school. A lot of times, simple research by the borrower would show that those jobs were not available or not at the pay rate advertised. A case of the "let the buyer beware".

Soaplady,

1.) Is it required to make a down payment to do a rehab for wage garnishment of the student loan once they have started taking the garnishment from your wages?
2.) The 1% at or above the garnishment. Is this 1% of the garnishment amount or 1% of the total defaulted loan amount?

No downpayment can be demanded as a condition of a rehab. There is obsolutely nothing in the Higher Education Act that requires it. They can ask for the down payment but it cannot be connected to the rehab.

The 1% payment is always a percentage of the current owed balance on the loan.

I offered them between 75-100 dollars per month...I received all of the paperwork from dept of Ed explaining my approval for hardship and the suspension of wage Collection...I am still waiting for my payroll to confirm they received the info from cbe group...

Understand that if you miss a single payment, the garnishment will more than likely start again immediately. Hopefully you have applied for a Direct Loan Consolidation loan for your defaults.

My fiance is currently on a loan rehabilitation, just made the last payment, however it still says he is set for tax refund offset, we have already filed his taxes, we were promised by edfund when we went into the rehabilitation that it would stop any offsets and garnishments, edfund is no longer and it is now ecmc... What can I do? Are they still going to take the refund?

Legally they can do it with any defaulted student loan.

Call them and ask.

help my loan went into default, than they want to garnish my wages and will start to be doing this by the middle of feb. they will take the money out and leave me with no money. I got my taxes taken away because of this and I have so many medical bills and other bills to pay for this is just un real. I understood at the time that I had to start paying for them but with no health insurance and no family support I did what I did. So long story short I might as well be homeless if they are going to do this HELP

They only garnish 15% of your net wages, leaving you with 85%. If this is such a hardship, why did you not respond to the 30 day garnishment notice? You had the opportunity to appeal the garnishment as a hardship.

I wanted to say thank you, I ended up calling ecmc, and they said that because the rehabilitation has been finished and is just waiting for a regular lender to take over that, yes they will take the rufund because it is automatic, but that they will forward it to us, as the rehabilitation went through.

So this is the first step to getting things in order. Both of our student loans are back in good standing, with rehabilitation complete.

Now for the next question, we both have medical bills that are still outstanding, as well as other debts,( he has some credit card debt) If we consolidate to try to get it managed and in one payment a month, can we consolidate medical bills with credit card bills, and such?

If a down payment is not required for rehab, I could have prevented the garnishment. When they were contacted prior to the garnishment I was offered rehab but was told I would need to make a down payment of over $3000 and after that a payment of $365 per month. I informed them that I did not have the 3000 that day, but I could make the payment of $365. I could have doubled it, but I did not have the $3000. Too bad, so sad I didn't know of you at that time Soaplady or I would have given them the facts as you have given me. Thanks. I'll be trying to get the rehab started. Hopefully they will accept a lower amount than the 1%. That would be over 1100 dollars per month that I definitely can't afford.

I'm getting garnish for almost two year now is there any way to get them off my check onlyand its star make $430 every two week because of garnishment. Is it too late for me, or can i still work out a plan with them.