Wage garnishment related to student loans...has this happened to anyone? - page 2

by RNewbie 15,413 Views | 44 Comments

I received an email from my employer today stating that my wages will be garnished. I will no longer receive any pay. I tried to contact them, but the offices are closed for today and I'm going crazy. The form that my employer... Read More


  1. 0
    You have to keep very good records of all your student loans. It is possible that you thought your loans were deferred, but instead the deferment was denied and you ended up in default and then those loans are sold off to a debt collection agency. The only other explanation is that it is an error, but good luck proving that. It will be very difficult. I hope you kept all your records re your student loans. I would touch base with the student loan company that you deferred your loans with to find out if that went thru or if they sold your loans to a debt collector. Stuff like this happens all the time, they make more money if they deny you a deferment or forebearance and let your loan go to default and collections. Minimum 25% collection fee on top of other fees and interest and you can find yourself owing 2-3 times the original loan. I would check into this ASAP! Until you can get this straightened out and current on all your loans they will also be taking any income tax refund you might have and they could even take away your license to practice. This is very serious! I believe they will probably garnish 25% of your pay, I'm not positive but I think this is the maximum they can garnish. I guess you'll find out soon enough.

    Your situation serves as a warning for everyone else that has student loans. You must keep all your records and stay current. Get everything in writing and hold onto it in a safe deposit box! You really have to protect yourself!
  2. 0
    Thanks for all of your responses. I have gotten nothing regarding court, a notice, a phone call. The only student loan company that contacts me is the one that I'm making payments to. Having to wait to speak to someone until in the morning is driving me crazy!
  3. 0
    I have read that it is possible to have a judgement against you without your knowledge. This happens when an unscrupulous process servers states in writing that they served you, when in fact they did not. Quite a common practice. Not meant to alarm you, just giving information I came across.
  4. 0
    Go to HR and ask to see the letter that they received. On it should be a company and a phoone number. They can only take 15% of your gross income until the loan is paid off. Sometimes you can talk them down to 10%. It is my understanding that they can't take your entire income, just a percentage of the gross wage. But call the company and ask for an explination, and also explain that you have made payements. who the payments were to, and in what amounts. Sometimes, if you do not consolidate your loans, you may be paying on one but not all.
  5. 0
    Quote from sunbaby0811

    Yes, you are right. I should have said that. I have never been sued (ptl) but I thought they had to physically serve you the papers. That would mean you KNOW you are being sued?! Right?
    No.

    Varies by state but this is really not a lawsuit per say but a judgement.

    BTW, for Federal loans they can garnish up to 15% of your net income, for private they can garnish up to 25% (this too varies by state)
  6. 1
    I had a situation where I got a letter stating I was being sued for a debt that accured when I was about 18 yrs old. The letter went to an old address I was lucky I got it through a neighbor of my parents. But I agreed out of court to make payments and Im done..maybe you can do the same thing?
    I know someone whose wages were garnished but it was a percentage and they agreed to it. I honestly would quit my job if I was working and not getting paid. I dont think its legal..how on earth can you make rent,food,bills??
    BloomNurseRN likes this.
  7. 0
    Quote from threebrats46
    I had a situation where I got a letter stating I was being sued for a debt that accured when I was about 18 yrs old. The letter went to an old address I was lucky I got it through a neighbor of my parents. But I agreed out of court to make payments and Im done..maybe you can do the same thing?
    I know someone whose wages were garnished but it was a percentage and they agreed to it. I honestly would quit my job if I was working and not getting paid. I dont think its legal..how on earth can you make rent,food,bills??
    That is why they only can garnish 15%-25%

    Now think about what they can garnish for not paying your income taxes or worse, child support.
  8. 0
    Quote from sunbaby0811
    Yes, you are right. I should have said that. I have never been sued (ptl) but I thought they had to physically serve you the papers. That would mean you KNOW you are being sued?! Right?
    Depending on the state there are several ways in which you can be served, not all of which involve you being the person that receives the summons and complaint. It could be someone who lives with you and is related to you, etc.
  9. 0
    If all of your loans are federal loans (stafford subsidized/unsubsidized, parent plus) you can look them up on NSLDS website: National Student Loan Data System for Students

    I believe you can also look up any consolidated federal loans. This website will tell you how much you owe and who you took out the loan with.

    If they are private loans I would contact the original lender to see who currently owns them. I do not believe nslds holds private loan info.

    I worked in the office of an agency and we got those all the time. The employees would go to a new agency that didn't have their garnish info. I do not recommend doing this. Once the employer has it - they have it for all future earnings. If you hop around you might loose track of what you have already paid in the garnishment.
  10. 0
    Quote from newbie
    thanks for all of your responses. i have gotten nothing regarding court, a notice, a phone call. the only student loan company that contacts me is the one that i'm making payments to. having to wait to speak to someone until in the morning is driving me crazy!
    we cannot give give legal advice as per terms of service. terms of service the laws vary widely state to state. i am sorry this is happening to you i wish you the best.

    get a lawyer.


Top