Private Loans & Wage Garnishment
Date: Sun, 06/05/2011 - 14:12
My private student loans have just been sent to a collection agency and they are asking for $12,000 minimum payment before setting up a payment pla. I read on the U.S. Department of Education website that you can fill out a financial disclosure statement to prove hardship if my wages get garnished. Is that for Federal loans only? I have found that there are options for federal loans but not for private loans. Will a debt collection agency accept a financial disclosure statement and lower my payments if they find hardship?
Department of Ed rules do not apply to private loans. They have
Department of Ed rules do not apply to private loans. They have their own authority to set payment plans, down payments and documentation requirements.
They are under no obligation to grant hardship or affordable payments.
