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Student loan Wage Garnishment - How can I remove them?

Date: Tue, 03/14/2006 - 10:10
Submitted by on Tue, 03/14/2006 - 10:10
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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.
thanks


Quote:

So here is where I need some guidance - I am making a good salary and would like to pay off my loans, however with 10 years of interest tacked on I am shocked by the amounts: my $42k of loans have nearly $20k additional interest on them

Your interest has been capitalized plus you were assessed up to 24% in collection fees.


. Quote:
I am hoping that considering the situation, I can work out a plan to repay with a reduction of that interest amount.


Wont happen. They will only reduce collection fees if you settle in a lump sum. Only in extreme hardship cases will they waive interest and they will not do it without a settlement...ie...they will not allow you make payments on a reduced amount.
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No garnishment has started, however I did receive calls claiming they needed a call TODAY or they would contact my employer

Take them seriously....once the notice is sent to the employer, it gets even more difficult.



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A friend I spoke with who once defaulted said they can't do that until I have been working for a year, but I don't really want to play with the rules - I want to figure out how I can repay them without creating financial hardship for myself

your friend is wrong. You cannot be garnished for 12 months if you were involuntarily separated (laid off) from your previous job. If you were in school, or voluntarily quit, the 12 months does not apply.
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.I would really appreciate any advice. Should I contact the department of education or the scary collector from the garnishment department that has left a few voicemails for me (I was out of town for work for the last week, and came back to three identical messages)?

Department of Ed will not talk with you...your account has been assigned to the CA under contract...they will not interfere without cause.
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Please help! Who should I contact and what is my best course of action? Should I just get a lawyer to help me deal with this?

An attorney cannot do anything for you that you cannot do for yourself. You have to deal with the CA and quickly. The best option for you is either rehabbing your loans or consolidating ASAP with the Direct Loan program. With a $62k balance, your rehab payment for 9 months would be around $600 per month. The good thing about rehab is that it will waive your collection fees when you complete the payments.


Submitted by SOAPLADY on Mon, 09/26/2011 - 13:29

SOAPLADY

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Soaplady,

I just spoke with the department of education. They told me they cannot do anything anymore with me directly and I need to speak with the CA. Bummer, considering how unethical I think the CA has been in their efforts to contact me (thus why I assumed it was fraud).,

They did tell me, however, that if I have not been working for the entire last 12 months, the wage garnishment cannot happen until I have. That contradicts what you have stated above. I read through the thread believing you were hard-edged but trying to help by providing facts, but the discrepancy makes me wonder if your motives are to help people or just to get people to pay quickly and pay a lot. ,

I hate to be skeptical, but I must wonder why your information contradicts the actual Dept of Ed. collections department. I think a lot of people on there have relied on you for honest, expert and unbiased advice, and I sincerely hope that is what you have been providing.,

I am (somewhat apprehensively) going to contact the CA and try to work something out. The truth is, I will likely be leaving the country (for work with a non-US company) before year-end (I have dual citizenship). I doubt they will be able to track me abroad, so hopefully they will work something out that is reasonable. I fully want to repay my debt, and provided they don't try to do anything slimy and underhanded, I will. Right now, based on the messages they have left for me, I don't trust them at all.,

I do hope they will give me some relief due to my circumstances, but I suppose the phone call to them will tell.,

Remi


Submitted by Remi on Mon, 09/26/2011 - 15:19

Remi

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Sorry, but either the rep at the DOE gave you the wrong information or you misunderstood it.

From the DOE website...http://www2.ed.gov/offices/OSFAP/DCS/awg.html
Quote:

An opportunity for a hearing to present and obtain a ruling on any objection that garnishment cannot be used at this time because the borrower is now employed within a 12-month period after having been involuntarily separated from employment;


So if you were not laid off your previous job, this would not apply which is exactly what I said before.

Do not go into a conversation with them about what has happened in the past....they have heard every story under the sun and they are not going to cut you any slack. Look at going forward, getting it resolved. I collected Oklahoma student loans and I had people who were actually in the building when that one was bombed...they got a six month grace period/deferment added. Same with victims of Katrina...they got 6 months. At this point your options are rehab or consolidation. It isnt going to go away....ever.


Submitted by SOAPLADY on Mon, 09/26/2011 - 17:19

SOAPLADY

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Hi,

I have recently received a letter in the mail about what looks like wage garnishment from the court I live by. Also attached are papers to appeal in court. I'm slightly confused as to if this is the form to appeal the garnishment, but looking at my bank account, it looks as though it has already started. I owe $5,895 with the loan and the court costs brings it up to $6,100. I already know that they will take my tax refund, which usually that equals out to be anywhere from $2-4,000. My questions are:

1.) Should I fill out the forms given to appeal, if it look like the garnishment has already started?

2.) Addition to the above question, with my tax refund being as high as it is, will they lower the amount taken from the garnishment?

3.) And finally, if there is a low balance and I am able to pay it off, is it at all possible to just give them a check with the lump sum?

Thank you.


Submitted by hevans212 on Wed, 12/14/2011 - 17:24

hevans212

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If they have already sued you thru the courts, your case is much more complicated. AWG rules will not apply You say you are looking at your bank account...are they seizing money out of your account?

Quote:

1.) Should I fill out the forms given to appeal, if it look like the garnishment has already started?
Again, if they did pursue a court judgment, the appeal will not be sucessful. AWG garnishment is 15%...under a court order, most states will allow a 25% garnishment. Different rules.
Quote:
2.) Addition to the above question, with my tax refund being as high as it is, will they lower the amount taken from the garnishment?
It will lower the overall amount...it will not lower the monthly garnished amount. So you will be garnished for a shorter length of time. Keep in mind, interest is still accruing.

Quote:
3.) And finally, if there is a low balance and I am able to pay it off, is it at all possible to just give them a check with the lump sum?
Of course you can.

Thank you.


Submitted by SOAPLADY on Thu, 12/15/2011 - 05:33

SOAPLADY

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I had some problems with my student loan debt as well. After researching the consolidation program, I called a few companies to see if someone would be able to help me with this program. I had wage garnishments of 25%, my tax returns were being taken from me every year, things were getting tight. I called this company, University of One, and they explained to me the entire program, and how they could help me get out of this situation. They were able to remove my garnishment in about 8 weeks, and then consolidated my loans for me into one, removing my defaulted status and enrolling me into the IBR payment plan. It has been a life saver! I HIGHLY recommend anyone at least calling this company to see what they have to offer. They are accredited on the BBB, and they do have a good rating. I recommend speaking with Tom Walker, tell him that Paulo referred you. Here is his number: 888-905-1464, EXT 111. He'll explain everything to you clearly and let you know what your options are. Good luck to everyone with student loan debt, and I pray that everyone can finally get relief from this terrible loan situation!!!


Submitted by on Tue, 06/12/2012 - 07:39

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Just want to let everyone know. You can consolidate for free by calling the Dept Of Education yourself 800-557-7392. You do not have to pay any fee, you can do this on your own by calling the Dept of Ed.


Submitted by on Fri, 10/26/2012 - 06:58

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Quote:

I had some problems with my student loan debt as well. After researching the consolidation program, I called a few companies to see if someone would be able to help me with this program. I had wage garnishments of 25%, my tax returns were being taken from me every year, things were getting tight. I called this company, University of None, and they explained to me the entire program, and how they could help me get out of this situation.


You probably got ripped off too....all you had to do is call the CA or Department of Ed and they would have done it for FREE. All this information is free on the DoE's website plus I have links posted in the sticky section of this forum.


Submitted by SOAPLADY on Fri, 10/26/2012 - 08:21

SOAPLADY

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