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

by RNewbie

12,801 Unique 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
    If it is a federal student loan, you can go through the "Federal Student Loan Rehabilitation Program", to get yourself out of default and stop wage garnishing. If that's the case, look into it.

    This crap is happening to me right now. I co-signed a student loan eons ago. My grandmother was the principal borrower and had been making the payments on it as a gift to me. She died in 2007. Unbeknownst to me, as it was not included in her estate, there was still a balance of 4,000 ish dollars remaining on the loan. Fast forward to now, file my taxes (filled out my fafsa at the same time), got no return. I'm thinking "WTH" Get my fafsa results back and I'm defaulted on this totally random loan, despite the fact that my other ones are in good standing.

    I am currently rehabilitating, takes 6 months, only get one chance... so no screw ups, but i'm protected from wage garnishing and having my tax returns eaten in the future.
  2. 0
    Wow. Learn something new every day!! Op hope you get this figured out and don't lose too much sleep over it!
  3. 0
    If you're currently working at a state hospital or non-profit hospital, keep in mind that there is "loan forgiveness" for federal student loans after a certain amount of payments have been made.
  4. 0
    Quote from watersamy
    If you're currently working at a state hospital or non-profit hospital, keep in mind that there is "loan forgiveness" for federal student loans after a certain amount of payments have been made.
    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?
  5. 0
    Quote from RNewbie
    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.
  6. 0
    Quote from Leo*
    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.
  7. 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!!
  8. 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!
  9. 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.
  10. 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


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