Wage Garnishment / Consolidating my loans
Ok cool. I've been reading if I go with the Income contingent loan I may be accepted since the loans are defaulted. Just wasn't sure if that would include loans are being garnished from my check.
Steve ...please do not offer advise since you obviously do not have any working knowledge of student loans.
When you are in default, you have no other option than to be in the ICR replayment plan...that is a requirement. The loans in garnishment will probably be an issue. Normally loans in garnishment cannot be consolidated...some lender will agree to lift the garnishment for consolidation, others will not. Talk them them. The normal path for loans is garnishment is to rehab them first and then pursue consolidation.
You would possibly need to rehab the loan first. You will qualify for PAYE Plan only if your loan is not a Direct PLUS for parents. On top of that, you would need to prove partial financial hardship wherein your monthly repayment amount under the 10 year Standard Repayment plan is greater than the monthly amount you would need to pay under the PAYE plan. You must also be a new borrower as of October, 2007. FFELs do not usually qualify for the PAYE plan either. All this is just what I know. You should wait for Soaplady to answer this thread. She is the forums resident student loan expert.