Student Loan Wage Garnishment Withdrawn?
Date: Sat, 09/01/2012 - 21:01
I'm officially confused, :confused: help me please. I owe 10k in defaulted student loans. I filled for a Hearing or Exemption, due to financial circumstances, but I received a letter saying that they have withdrawn their prior to Wage Withholding, and that no hearing will be held. They will not withhold my wages but they said I have to make satisfactory repayment arrangements on my account or it will result in them withholding my wages. Does this mean I'm not in default? What exactly does this mean? I'm hoping to go back to school asap, and am in a financial hardship right now. I can't even afford to have someone watch my 7 month old son while I work, I have to take him with me everyday :(. This isn't a permanent situation, my financial situation will improve in just 6 months. I'm just not sure what to do right now.
Of course you are still in default...you wont be out of default
Of course you are still in default...you wont be out of default until your loans are rehabbed or consolidated. All the letter is saying is that you need to call and makes repayment arrangements.
You will not be eligible for financial aid while your loans are in default. My suggestion is to apply for a Direct Loan Consolidation asap. Call and talk to the collection agency about it.
