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I am a resident of PA and I defaulted on my student loans. I received a wage garnishment notice and they garnished my tax returns last year. Now PHEAA has sold the loan to a collection agency.

My question is: Does the collection agency have the right to garnish my wages if I work in Pennsylvania or Delaware?

PHEAA has not sold the loan....they have just assigned it to a collection agency. And under federal law, your wages can be garnished without a court order under Administrative Wage Garnish. They would have sent you a 30 day notice explaining your right to appeal and enter into voluntary repayment.

Sub: #1 posted on Thu, 09/06/2012 - 04:11

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Thank you for your reply. I have the notice but PHEAA will not talk to me. Do I try and set something up with the collection agency?

Thank you

Sub: #2 posted on Thu, 09/06/2012 - 07:42


Once PHEAA assigns an account to collections, they will not deal with you...this is standard with all guarantors.

You may or may not be able to stop the garnishment. You missed the appeal period and some guarantors will not lift the garnishment without evidence of extreme hardship and even then an appeal could take 3-6 months....appeals submit within the 30 day window will take priority over a late appeal. Depending on your circumstances, you might want to persue rehab which will require you to make 9 payments over and above the garnishment. Every guarantor sets different rules so you will need to call and ask.

Sub: #3 posted on Thu, 09/06/2012 - 07:52

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