Wage garnishment related to student loans...has this happened to anyone? - page 4

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. by   RNewbie
    Another update: I have been able do the rehab program with all of my defaulted loans. My total payments are only 550/mo, that's better than I thought. The crazy thing is 4 of the loans that were in default were being serviced by the same company that I was actually paying on loans to. No one could seem to tell me how the payments I was making went to half the loans and how the other went to default. Still confused on that on but I'm fixing things. Also, I was given a number for the national loan locator line. I haven't tried it yet but apparently they locate info on any loans you have out there if anyone is interested.
  2. by   Jory
    You need to see an attorney and I'll tell you why.

    Nobody can garnish your wages without a court order. That means the company that sought to garnish your wages, filed a judgment, there was a court date, you were sent notices of the court date and when you did not show, the court awarded the garnishment.

    That is how it worked.

    This is also why you need to make sure that the student loan company ALWAYS has your current address. So many students move and don't inform their student loan company...and this is what happens. If your loan gets sold, they cannot reach you.

    When your loans were deferred, they were deferred for a certain number of months, typically 6...they gave you date of when the deferment would end, so it was up to you to keep up with it.

    HR, has to give you the name of the company that is garnishing your wages....my advice is to call them found out under whose authority was granted, and trace it back from there.

    My guess is that your loan was sold and they could not reach you to tell you that it was sold, therefore, you were sending your payments to the wrong place.
  3. by   Picklefreak
    If you default on a student loan, the government can garnish your wages and confiscate your tax refund. They do not have to go to court and get a judgement against you as other creditors would. It's what you agreed to when you signed the promissory note.
  4. by   FLmomof5
    I need to correct a misconception being promulgated here.... student loans are the ONLY loans that do NOT have to have a judgment to get an order for wage garnishment.
  5. by   sauconyrunner
    By now you may have figured something out, but when I graduated, I had a number of different loans as well...I called the company and asked if they could consolidate them all together. The company did it directly for me and because I did that they gave me a (extremely small) decrease in the interest rate. It helped.
  6. by   Sand_Dollar
    During my hospital orientation we were told that you will be immediately fired, under the code of conduct, for nonpayment of federally funded student loans. I was shocked to hear this!