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DCS / garnishing wages........

Submitted by on Mon, 03/28/2011 - 06:03
Posts: 202330

Asking for my son.......... can DCS garnish wages without a court judgment? I was told not. His loans are from state universities in Wisconsin and they are substantial (undergrad and masters both). Please advise. He now works and lives in the Twin Cities / MN.

Note: they did threaten to garnish his wages in a recent letter

DCS can and do garnish under the Administrative Wage Garnishment program. This garnishment is authorized by congress and does NOT require a court order. DCS is a Department of Education contractor and do collector for several FFELP guarantors and the US Department of Ed. He more than likely has sub and unsubdised loans.

Submitted by SOAPLADY on Mon, 03/28/2011 - 13:56


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Student loans / Great Lakes from his undergrad and masters days in school, both state schools in Wis. Hope that helps.......

Submitted by on Tue, 03/29/2011 - 04:43

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Yes, Federal loans through Great Lakes Higher Ed and "Key Loans" as they called them through his local bank. I believe fed was subsidized and the other was not.

Submitted by on Tue, 03/29/2011 - 04:49

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Also, the fed loans were for state university tuition (under and post grad). The "Key Loans" for additional costs including housing, etc..........

Submitted by on Tue, 03/29/2011 - 04:52

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Key loans are private loans. Has he defaulted on them? They are wicked.....if he has defaulted they will demand balance in full and more than likely will end up suing him.

Great Lakes is a FFELP lender. These are federal loans. It really doesnt matter what it paid for.....that is irrelevant.

He has a masters degree? Quite frankly, he should be the one doing the research and asking the questions. He needs to understand the situation he has gotten himself into. There (in my humble opinion), no reason to default on a federal loan. There are deferments and forebearnaces up the wazoo. He could have consolidated thru the Direct Loan Program. He needs to start taking responsiblity.

Submitted by SOAPLADY on Tue, 03/29/2011 - 05:08


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DCS is after him for the federal (Great Lakes Higher Eduction) loan and he has defaulted on it, months ago. The came to his name to his parents in WI but he lives and works in MN. He recently got a new job after being unemployed for approx 3 months. It appears to me they do not know his current address and my guess is they don't know his employment status either.

On the Key loan side I don't know that's he's ever made a payment. They did contact me recenty as once during his early years in college as an undergrad I co-signed his application for a semester. My question is can the bill collectors on that loan (amount grew each semester when he requested more money) come after me for the total amount of the loan if I only co-signed for one semester??

Bottom line is my son just keeps ignoring all of it and refuses to contact them.

What would it cost him to get advise from someone who's knows this "stuff" unlike me for the most part? Please advise.

Note: I am afraid to use names as I don't know who to trust or who might give the information to DCS or other debt collectors. This is a major mess!

Submitted by on Tue, 03/29/2011 - 10:33

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You are 100% correct in your comment. He should be investigating..... unfortunately, he chooses to avoid and thinks his only option with the federal law is to make full payments. Both I and his grandfather have worked to get him to understand any payments can only help him. So far, he avoids us, too, as far as our recommendations go. Sad for a guy with an advanced degree, isn't it?!

Submitted by on Tue, 03/29/2011 - 13:07

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Maybe telling him that the IRS will provide the guarantor with his employment information....maybe that might make him move his hiney??? Since he has not bothered to provide them with his current address, he wont get the garnishment notice. His pay can be garnished by the federal loans for 15% without a court order. And when his private loans sue him, they will get 10% on top of that....
Thank god the Twin Cities has a good bus system....getting a car loan with a 20% interest rate is gonna hurt.

Maybe telling him that is going to cost him AND you a judgment on your credit....does he not take into account your finances? The private loans will sue.....both of you.

He needs to start reading...tell him to come here...I will set him straight. Or go Directly to the Department of Ed website....Direct Loan Consolidations....

Submitted by SOAPLADY on Tue, 03/29/2011 - 18:39


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Thanks so much for all the info and suggestions! I will make sure my son, my wife and father all know it or read it! I hope this will get him to move and take action!

One last questions. Can the Key Loan people come after me for ALL of my son's debt even though I only co-signed one time for one semester for his loan? Shouldn't I only be on the hook for the amount he requested for that one semester, not every semester over the years? Please advise.

Submitted by on Wed, 03/30/2011 - 04:46

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