Wage garnishment related to student loans...has this happened to anyone? - page 3

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... Read More

  1. Visit  jtmarcy12 profile page
    0
    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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  3. Visit  RNewbie profile page
    0
    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!
  4. Visit  destova profile page
    0
    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.
  5. Visit  morte profile page
    0
    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
    Last edit by morte on Jun 7, '12
  6. Visit  netglow profile page
    0
    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!
  7. Visit  HouTx profile page
    1
    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.
    Purple_Scrubs likes this.
  8. Visit  Asystole RN profile page
    0
    Quote from HouTx
    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?
  9. Visit  33762FL profile page
    1
    "
    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.
    anotherone likes this.
  10. Visit  sunbaby0811 profile page
    0
    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....
  11. Visit  Stephalump profile page
    0
    Quote from HouTx
    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.
  12. Visit  RNewbie profile page
    0
    Update: I learn something new everyday. Thanks for all the helpful responses.

    I went to the national student loan database. I did not even know this existed, but I was probably given this information when I was told to do financial aid exit counseling. I was so happy to be graduating, done with school, and focusing on getting my first job that I paid no attention. I was also not focused on it because I knew I had a grace period so it was nothing that I had to take care of right away. After the grace period was up, a company contacted me about making payments on my loans. That is the company I have been paying for a few years now. I thought that they were servicing all my loans. They were not! No one else contacted me regarding student loans so I had no idea. After looking at the database I have a total of 11 loans, 7 of them are defaulted on. The only ones that are current are the ones that are being serviced by the one company I've been paying.

    I have no idea how I defaulted on all of these loans and they have not shown up on any of my credit reports. I subscribe to Experian monthly and am able the check the other 2 credit reporting agencies every 6 mo. Nothing on my credit reports and the other loans are all listed under other servicing agencies that didn't contact me. This is all my fault for being irresponsible and making assumptions. I'm now in some deep sh*t.

    Good news is someone finally called regarding the wage garnishment and I was offered the loan rehab program to stop the wage garnishment and have the default removed from my credit after making on time payments for 9 mo. So my plan is to do this with the other defaulted loans (they are not on my credit, but it would stop future wage garnishment and income tax garnishment).

    What I would really like to do is consolidate the remainder of my loans. I have not found a lot of helpful info on how to do that or if it's even possible at this point in the situation that I'm in. It's just going to be really hard to keep up with 9 diff loan payments. Has anyone else consolidated loans or have any info on how to go about doing this??
  13. Visit  destova profile page
    0
    You need to be very careful about consolidation if you plan to go back to school and use the educational deferment at any point in your future. Many consolidation programs remove any and all deferment options.

    Having said that, take time to call your various lenders to see what they can offer you. Tell them the total amount of loans you have, the companies that have them, and ask their terms (rates, payment options, etc) Do not let them "run numbers" with your social or do a credit check at this time. If you know your credit score you can tell them and they can give you potential rates that will depend on them verifying your score. I say this because you don't want a bunch of lenders checking your credit at once, it will damage your credit even more.

    Check with your bank too, many do consolidation loans even if your credit is shaky. They know you can't declare bankruptcy on it and its easy for them to get garnishment if you default. So its a "safe" loan for them to give.

    Once you find a lender with decent rates and terms, they will walk you through the process.

    Be aware: if you include the loans that are in rehab, it will stop the garnishment but will also leave those defaults on your record. I'd deal with rehab first then do consolidation.
  14. Visit  destova profile page
    0
    Also, I've been hearing about a credit union that is for the navy. Apparently anyone can join. My friend got his car loan through them at 1.7% which is crazy cheap. Not sure if they do consolidation, but it would be worth google time to find out!


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