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

Nurses Professionalism

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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 sent me has the name of the company that filed the garnishment. It's for student loans and it's from a company that I know nothing about. My student loans were deferred for a few months and I just started making payments again but to another company. I don't even know who this company is or why they are garnishing my wages. I work for a few diff agencies per diem and however the company got my info for this employer I guess they can get it for my other employers as well and garnish those wages too. Until I am able to speak with my employer tomorrow to find out what's going on, I will be going crazy.

Has anyone had this happen? What did you do? Did they take your whole check or just a percentage?

Are you sure, I've never heard that. Does the hospital pay the remainder of the loan or does the gov just forgive it after the certain amount of payments?

The government forgives it (if its a federally subsidized loan, otherwise no) but I'm pretty sure you have to make regular on-time payments for 10 YEARS. There are a lot of other criteria as well.

I'd just figure out what the loan is and try to rehabilitate it, so you can fix your credit and move on with your life.

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The government forgives it (if its a federally subsidized loan, otherwise no) but I'm pretty sure you have to make regular on-time payments for 10 YEARS. There are a lot of other criteria as well.

I'd just figure out what the loan is and try to rehabilitate it, so you can fix your credit and move on with your life.

It's called the Federal Loan Forgiveness Program. Like Leo said, it applies only to federal loans and you have to work at a state instituion and make regular loan payments for 10 years (the actual language is 122 months). Then the balance of your loan can be forgiven by the federal government.

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Specializes in Med-Surg, Oncology, Neurology, Rehab.

Please call the company and apply for a deferment, you can get this and can last for years, you just have to keep applying. They have deferment for different reasons, unemployment, hardship, etc. Best Wishes!!

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Specializes in Trauma-Surgical, Case Management, Clinic.

Update:

I spoke with my employer and was told that the order they received was to take 15% of my wages weekly, so I will still get a check. I was told that it is based on your take home pay after taxes and if you make less than 217.00 weekly, they cannot take anything. I have the info for the collection agency and have not been able to speak with anyone. They will not return my calls. I'm trying to work out a payment plan. 15% of full time income is a lot. I usually only work part time with this agency so it wouldn't be as much but if I worked full time 15% of my monthly income would be $775, are they serious? I still have no idea who the company is or any info on the original lender which is another reason I'm still trying to contact them.

Also, I checked my credit report and it appears this company just showed up on my report last month. I'm guessing they bought one of my loans and it seems like they decided to garnish wages right away. I never got any type of notice. I'm still confused on how this all happened, but I'm still investigating.

So, my plan is to make a payment arrangement. If they do not agree. I guess I will agree to the garnishment and only work once a week or once every other week for this agency and work the rest of the time with another agency. I'm annoyed because, they are my fav agency and they always have plenty of work. Pay is ok and I never get canceled.

ps- $775 would not be horrible if I was not already paying on other student loans!

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Having your wages garnished is going to be a financial difficulty as well as a huge hit on your credit record. Go to the website posted earlier in this thread (the student loan database one) and click on the loans with the triangle warning symbol next to them. Then look to see who the guaranteeing agency is and call them. They will be able to direct you to a number to call to start a loan rehab program. It will stop garnishment as well as clear your credit record of all this after ten months of steady payments.

Good luck!!

Eta: after the ten months of steady payment, they will resell your loan to another company, who will then resume normal payments as well as offer forbearance if you are financially in need of it.

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I repeat, make sure it is you they are looking for!

I recently had a collection agency try to collect a debt I did not owe. the business involved consolidated locations, and I am thinking some of the bookkeeping was screwed up. Good luck

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This is going to get worse soon.

State and Fed loans are big sources of income loss and both are going to crack down on recovery. Unfortunately the effects of the economy - no jobs, as well as those who've abused chances to defer (meaning those who could easily have paid but chose not to in past years...) have changed things for all who had legit extreme hardship reasons for deferring/default. Now you will lose your shirt and ability to work too if you are licensed, as well.

Some states will not renew you if you have bad going on with your loans, serious FYI for peeps as you approach renewal. Also why I say do not go into extreme debt for a degree as limiting as a nursing degree is!

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Specializes in Critical Care, Education.

Wow - yet another reason that it's good to be a Texas resident. In TX, there is no wage garnishment except for child support -- and of course, government entities. Let's face it, nothing is safe from the Feds. On the down side, we are among the states in which student loan defaults will prevent you from renewing any type of professional license... not just nurses.

My heart goes out to everyone who is struggling with student loan repayments.

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Wow - yet another reason that it's good to be a Texas resident. In TX, there is no wage garnishment except for child support -- and of course, government entities. Let's face it, nothing is safe from the Feds. On the down side, we are among the states in which student loan defaults will prevent you from renewing any type of professional license... not just nurses.

My heart goes out to everyone who is struggling with student loan repayments.

So how is TX great? Since the topic is student loans, not only would someone in TX have their wages garnished but they would also not be able to renew their license?

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"

in tx, there is no wage garnishment except for child support "

for now. i'll bet you anything that the practice of wage garnishment for student loans is coming to all 50 states within the next 5 years.

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OP - if you find out this indeed is your loan and what they're doing is right and you are able to negotiate payment details with them, PLEASE make sure you get the details of your payment plan from them in writing. And don't ever give them access to your checking account (ie: to make automatic withdrawls). I know several people who have been cleaned out by people like this :( They say "oh I will only take 200$/month" and they take it all....

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Specializes in Forensic Psych.
Wow - yet another reason that it's good to be a Texas resident. In TX, there is no wage garnishment except for child support -- and of course, government entities. Let's face it, nothing is safe from the Feds. On the down side, we are among the states in which student loan defaults will prevent you from renewing any type of professional license... not just nurses.

My heart goes out to everyone who is struggling with student loan repayments.

Federal student loans are, indeed, from the Feds. Garnishment is possible. Most private loans in the state are also federally insured, so they are also allowed to override the state law. So, basically....we're screwed here, too.

Plus, we can lose our license to practice. Yay Texas.

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