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I defaulted on a federal student loan, which had about $18,000 left on it, back in 1983 or 1984. Collection agencies have contacted me a few times over the years but I ignored them. I have not heard anything from them for many years now. Suddenly, I received notice that my wages are being garnished. OK, I deserve that. But what they want from me is $81,950. 30 years of accrued interest. I am just two years from retirement. How can I get this surreal amount reduced? Can they also garnish my social security? If I live to be 110, it will not be paid off. Surely there is some way to compromise on the amount?




Quote:
I defaulted on a federal student loan, which had about $18,000 left on it, back in 1983 or 1984. Collection agencies have contacted me a few times over the years but I ignored them. I have not heard anything from them for many years now.


Have you never had federal and state tax returns offset??
Quote:

Suddenly, I received notice that my wages are being garnished. OK, I deserve that. But what they want from me is $81,950. 30 years of accrued interest. I am just two years from retirement. How can I get this surreal amount reduced? Can they also garnish my social security?

Yup, they can garnish your social security 15%.
Quote:
If I live to be 110, it will not be paid off. Surely there is some way to compromise on the amount?


If you can come up with $60-$70k, they will settle.

Honestly, why should they reduce it?? You purposely ignored the debt. Do you not read the newspaper or listen to the news?? There is always something in the news about federal student loans and the fact that they never go away!! If you had not ignored it you could have consolidated it and gotten it out of defaulted years ago and had this mess paid off. You more than likely have an 8% interest rate and your monthly interest charge is around $540 per month.

Sub: #1 posted on Tue, 10/09/2012 - 19:53

SOAPLADY SOAPLADY
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That really sucks.... you should've paid the bills back then.

Sub: #2 posted on Tue, 10/09/2012 - 21:17

waffles waffles
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