Wage Garnishment
New to the site and hoping to get some information on wage garnishment due to a defaulted student loan.
First of all, I tried going back to college a couple of years ago trying to establish something in my life. However, I had to drop out because I could not support myself financially and go to school at the same time. I work at night (I normally get home at 530AM) and had a hard time getting to class and eventually fell so far behind that I had to drop out.
My loan (originally with Sallie Mae) has defaulted because I made the worst mistake possible; I ignored it. I ignored the mail and phone calls. Big mistake. Now, ISAC has contacted my place of employment and is going to garnish my wages. They are going to take out 15% of my wages each pay check which is about $70 per pay check and $140 a month.
I only make about $900 a month before taxes and have been having a hard time paying bills let alone paying for rent.
To put it simply, I am terrified as I do not know what to do. I owe about $10.5K. I have tried to contact ISAC on many occasions to try to figure something out but I have yet to speak with someone. I usually have to leave a message for the agent in charge of my account and have yet to receive a call back.
Now, this is what I do have. My parents are willing to help me out if I can get on some sort of payment plan. However, Im afraid I am too late to get on a payment plan or even if that is an option.
Can someone please help me out? As you can tell I am a bit flustered with all of this.
Oh and by the way, this could not of come at a worse time. I am just about to finish my EMT training course and I have my final exam tomorrow night. Also, I have to do an overnight ER shift tonight. So Im freaking out right now.
Please help.
Thanks.
You were sent a 30 day notice of garnishment...that was your opp
You were sent a 30 day notice of garnishment...that was your opportunity to appeal and enter into repayment. You can appeal now but it is possible that you would be denied. Your income is high enough to be garnished...and it would be 15% of your disposable pay...you income after taxes, mandatory deductions and health insurance.
Thank you for the response. I did some research and found that
Thank you for the response.
I did some research and found that I can make a large payment ($5k in my case) and over 9 months (up to 10 months) of wage garnishment plus additional voluntary payments to minimize the overall balance to no less than $1000. At that point, a company can purchase my loan and I can pay off the rest in full. Its to my understanding that if I do it this way that default will be taken off my credit report. But I am not sure. I do know that I could pay the entire balance at once but the default will remain on my credit report for 7 years.
I think this is my best option.
I just wish I dealt with this when I got the 30 day notice. Better yet, I should of just started paying it off a while ago. I guess Im literally paying the price now.
You are NOT required to make a downpayment to rehab a student lo
You are NOT required to make a downpayment to rehab a student loan. They can ask but they cannot make the down payment a condition of a rehab which is what they are setting you up for.
You have a FFELP loan... rehab will only remove the guarantors negative tradeline....Sallie Maes trade line will remain for the entire 7 years.
You can settle with student loans....they generally will waive the collection fees....these fees range from 18-24% dependng on the guarantor.