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Please help. Where to turn?

Date: Sat, 11/14/2009 - 12:30

Submitted by anonymous
on Sat, 11/14/2009 - 12:30

Posts: 202330 Credits: [Donate]

Total Replies: 5


My wages were recently attached for my federal student loans. I owe approximately $8K. They are taking 15% of my take-home pay. I cannot dispute that I owe the debt, that isn't in question. However, my ability to pay is the issue. I simply cannot afford to lose ANY of my disposable income. I am single, have 4 children. I do share custody with my ex-husband 50/50, but I still owe him child support in the amount of $160/month. My income was just barely enough before the withholding to put food on the table and cover rent and utilities. Now with the loss of $300+ per month, I simply cannot do it and am now on the verge of losing my apartment. I don't know what to do. I tried to submit information to show a financial hardship, but it took them 2 months to determine that I didn't submit enough information, and now I have to try again. Am I just wasting my time? With the wage withholding I am now bringing home approximately $1250-$1350 per month. If you factor in rent of $475, electric at $135, water at $55-60, car insurance $148, babysitter at $120-$160, child support $160, phone at $180, groceries at a bare minimum of $300, and miscellaneous expenses of doctor copays, prescriptions, clothes or shoes if the kids need them, school supplies, etc, you will see that my income is less than my expenses. I am now having to borrow from various friends or check cashing places just to carry us from pay to pay which only causes further problems. Seriously, I do not know what to do, or where to turn. Is there anything at all I can do to stop this, to discharge it, anything? I already went through my deferments, etc. Is there any advice out there?


You are in default on a federal loan. You would have been sent a 30 day garnishment notice of their intent to garnish your wages, giving you the opportunity to appeal and enter into repayment voluntarily. Not paying on the account is not an option, nor is there anyway to discharge it. You should have consolidated it thru direct loans before you allowed it to default.

Your numbers do not add up. A 15% garnishment at$300 would mean you take home $2000 per month before garnishment.

Only thing you can do now is appeal and get into voluntary repayment.


lrhall41

Submitted by SOAPLADY on Sat, 11/14/2009 - 14:18

( Posts: 17315 | Credits: )


I have just started being garnished for a Federal Loan b/c my monthly payment was not meeting the requirement. I have a 40K loan and will be garnished about 400 dollars a month. Is the garnishment actually going towards paying off the debt? Is there ANY way now to get out of the garnishment ever ... besides paying it in full? Thank you in advance for any assistance. Also, silly question - this is no chance I could go to jail for this, correct?


lrhall41

Submitted by shannonkm229 on Sat, 11/14/2009 - 16:34

( Posts: 2 | Credits: )


Your interest on $40k is probably around $225/month, based ona 6.8% interest rate. So depending on how much past due you have, you may not be touching the principal.

You can get out of the garnishment by rehabbing....that would require 9 months of online payments. Your loan would then be rehabbed and then you could consolidate with Direct Loans to make the payments more affordable.

And no, you cannot go to jail.


lrhall41

Submitted by SOAPLADY on Sat, 11/14/2009 - 16:52

( Posts: 17315 | Credits: )


That is my fear because when I was paying 200, it was only touching the interest. Vicious cycle.

How much will the rehab payments be in addition to the garnishments? Will the loan then go back to AES?

I figured about the jail thing but I haven't been sleeping out of complete fear. I have a severe auto immune disease that is worsening and I'm worried about how this will all turn out.

I can't thank you enough for your help!


lrhall41

Submitted by shannonkm229 on Sat, 11/14/2009 - 16:55

( Posts: 2 | Credits: )