I consolodated my student loans about 2 years ago.
Date: Fri, 03/11/2011 - 11:38
I consolodated my student loans about 2 years ago. Honestly, I have not made my student loan payments. I went to school to teach, and since budget cuts have been made in education, it makes it difficult. Anyway, my tax return was garnished and applied towards my student loans (which was FINE with me because I've been in contact with the collector TRYING to figure something out).
My questions is this: Can they apply my tax return garnishment to interest? (I was under the impression that they couldn't) When I consolodated, does that mean that its a new loan and the interest is a part of the original balance?
(The collector did provide a break-down of $ applied to interest and $ applied to original balance.)
My friend has his tax return garnished for child support and part was returned because it was interest. This year, he also had it garnished for student loans, and part was also returned because it was interest. THAT is why I'm wondering why my company CAN apply it to interest when nobody else can, and if it is because I consolodated my loans.
Thank you for your responses in advance.
My questions is this: Can they apply my tax return garnishment to interest? (I was under the impression that they couldn't) When I consolodated, does that mean that its a new loan and the interest is a part of the original balance?
(The collector did provide a break-down of $ applied to interest and $ applied to original balance.)
My friend has his tax return garnished for child support and part was returned because it was interest. This year, he also had it garnished for student loans, and part was also returned because it was interest. THAT is why I'm wondering why my company CAN apply it to interest when nobody else can, and if it is because I consolodated my loans.
Thank you for your responses in advance.
Ok...you consolidated your loans and obviously have defaulted.
Ok...you consolidated your loans and obviously have defaulted. (Why didnt you take advantage of your deferments???)
When you consolidated, your previous accrued interest was capitalized into the loan...,it became part of your principal. Over the past two years you would have accrued interest and then collection fees that are charged when you defaulted. When your taxes are seized, it is applied to the fees first, then interest and finally principal. These are the rules for student loans.
Your guarantor is doing the calculations....not the collectgion agency
