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

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Specializes in Trauma-Surgical, Case Management, Clinic.

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?

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Specializes in Trauma-Surgical, Case Management, Clinic.

I guess I'm freaking out bc I don't know if they garnish a portion or my whole check. If they take all of my income how am I going to survive? The letter I got said that I would not receive any pay. I'm so confused.

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The company is most liklely an asset recovery company that purchased the outstanding debt from the company that you actually owed it to.

They usually will only take a percentage of your checks. You should have recieved a notice(s) in the mail concerning this and as far as I know, it takes a court order to actually garnish you. You should have also recieved a notice about the court date.

It would benefit you to #1 look at your credit history, #2 keep your address(s) updated, #3 look at your mail, #4 pay your bills.

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Specializes in Trauma-Surgical, Case Management, Clinic.

Thanks. I'm seriously wondering what kind of percentage. I pay my student loans and when I was unable to I got them deferred. I am checking mail that I may have over looked while out if town, I don't see anything. My address is up to date. I'm going to check my credit now. I subscribe to experian and they notify me of changes to my credit, nothing has changed to my knowledge. This is so frustrating.

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they can only take a portion. If you have a common name, make sure the bill is actually yours. good luck.

I guess I'm freaking out bc I don't know if they garnish a portion or my whole check. If they take all of my income how am I going to survive? The letter I got said that I would not receive any pay. I'm so confused.
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I thought they had to sue you and win before they garnished wages?! Not just "surprise"!! Kwim? I'd be checking on this big time! Good luck!

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Specializes in Trauma Surgery, Nursing Management.

If you work for a state hospital, and you had either a federal or state sponsored loan, they absolutely CAN garnish your wages. I found this out recently when a co-worker had this happen to him. He said that initially, he had made some payments, then filed for deferments until he could get back on his feet. He let it lapse, stopped making payments, but also stopped getting a tax return because it went straight to paying off his student loan (he said that he had a Stafford Loan, which I think is federally sponsored, which would explain why he didn't get his tax return...I don't know for sure), so he thought this meant he was current in his payments. Then got a letter from someone (it is still unclear to me WHO sent him this letter, but I am assuming it was from either state or federal government) stating that they were going to start garnishing his wages if he didn't respond to the letter.

He was in a panic, and asked me if they could actually do this, and if I had heard of this before. I had no idea, but told him to call HR to see if they knew anything about the process, and sure enough, the HR person said that is was routine. HR told him that there is some kind of payment plan that can be arranged with the company so that only a percentage of your wages are garnished. He owed something like 20 grand, and they ended up taking only $300/mo out of his salary. He had to sign a contract (the only reason I know so much detail about this is because he asked me to go with him to HR and witness his signature-and then I had to sign as a witness.) that listed out the amount to be taken out every month and an end date for pay off. He always asks me if he can work overtime to compensate, and he takes as much OT as I can give him, so it doesn't hurt so much.

I haven't talked to him about this in a while, but I wonder if his credit improved because of the agreement or if it was hurt because of the garnishment-I am curious, but I know this is a sensitive subject for him, so I haven't asked. Anyone know the answer to this?

RNewbie-just sit tight until you can talk to HR. I have no idea if they can take your entire paycheck, but I think that you can make some kind of arrangement with the company and HR like my co-worker did.

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Thanks. I'm seriously wondering what kind of percentage. I pay my student loans and when I was unable to I got them deferred. I am checking mail that I may have over looked while out if town, I don't see anything. My address is up to date. I'm going to check my credit now. I subscribe to experian and they notify me of changes to my credit, nothing has changed to my knowledge. This is so frustrating.

There are 3 different major credit reporting agencies, Experian is just one. You also need to check Transunion, and Equifax.

Companies may report to 1, 2, or all 3 agencies.

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I thought they had to sue you and win before they garnished wages?! Not just "surprise"!! Kwim? I'd be checking on this big time! Good luck!

If you do not respond to your court date a default judgement is made against you.

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If you do not respond to your court date a default judgement is made against you.

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?

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Specializes in Critical Care.

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!

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Specializes in Trauma-Surgical, Case Management, Clinic.

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!

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