Husband has a federal loan with PHEAA. He has defaulted and enter into a rehabilitation program. However, wages are garnished during the first five months as he proves he will pay in a timely manner.
We received a letter from IRS stating our tax return would be offset on March 4th.
We received another on the 26th saying that would be cancelled.
I spoke with PHEAA Today and they did receive our tax return and it will not be returned becuase it was before the CARE Act (March 13th). This part I understand.
However, Performant has stated they do not have to stop garnisment for the period ending on Septmeber 30th (as it states in the CARE ACT) because it is "not a federal student loan". It is in fact one. The offset even went ot the original company PHEAA and PHEAA has had to be invovled and approve our attempt to rehabilitate which we are currently in the middle of.
Is it true that he would not qualify because Perfrormant Recovery is handling it? And aren't all Federal Student Loans in defaul and being garnished in this same situation? Thus, it's like the act isn't really doing a thing? We are very confused and are getting the runaround from both sides.
Also, just spoke to the department of ed who stated our loan is with PHEAA and federal. They said that sometimes when a borrower defaults and they handle loans they also use an adiditional private company, but THEY make the decission and are the ones who would tell the servicer to stop the garnishment and they are doing so. He told me to call PHEAA and give them that informaiton. However, PHEAA says I have to go through Performant. Performant cuts me off and tells me to to through PHEAA. PHEAA is the one getting the money and they confirmed that on the phone with me.
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