Student loan wage garnishment...

[Dala3]

Hi:

First, Happy New Year everyone!

A student loan wage garnishment from my paycheck started a month ago. I had no idea about this until the garnishments came. Apparently, my employer got a letter of "intent to garnish", but I didn't receive this copy. So, I had to find out from my employer why my paychecks were smaller than usual. Anyway, my question is this: Now that I don't really have a choice but to pay this off, is there a way in reasoning with the student loan department to possibly take this off my credit report? Is it possible? What options do I have, if any? (I was really hopeful of getting my credit score to improve especially since many derogotory items would fall off this year. I was patiently waiting for 2010, until this student loan garnishment slapped me back into reality a month ago. Any help would be MUCH appreciated.

Thanks so much in advance,

Dala

How much in arrears is your student loan? Can you afford the 10 percent garnishment on your paycheck?

The garnishment is not reflecting on your credit report. If you have a default student loan, that is how it is showing.

What is your other debt?

The reason I am asking these questions is because student loans work very differently to other debts.

How old is this debt?

[stone4779]

Originally Posted by Dala3

Hi:

First, Happy New Year everyone!

A student loan wage garnishment from my paycheck started a month ago. I had no idea about this until the garnishments came. Apparently, my employer got a letter of "intent to garnish", but I didn't receive this copy. So, I had to find out from my employer why my paychecks were smaller than usual. Anyway, my question is this: Now that I don't really have a choice but to pay this off, is there a way in reasoning with the student loan department to possibly take this off my credit report? Is it possible? What options do I have, if any? (I was really hopeful of getting my credit score to improve especially since many derogotory items would fall off this year. I was patiently waiting for 2010, until this student loan garnishment slapped me back into reality a month ago. Any help would be MUCH appreciated.

Thanks so much in advance,

Dala

I would call your loan people and ask for a rehabilitation program, that way the default goes off your credit report. Youll have to make 9-12 payments on tiem within I think 15 days of the payment due date(20 Maybe?) and then you will be out of default once someone buys your loan.

After you are out of rehab, you can apply for INCOME CONTINGENT REPAYMENT PLAN.

I did basically the same thing and my payments on a $9400 loan are $19.76 a month.

I REALLY would like to stress the you probably want to go with rehabilitation instead of just consolidating..reason being is it will help your credit a little bit to have the defult removed. Good Luck!

[stone4779]

OH, By the way...you can request a hearing with the Dept of Education to stop the garnishment.

www2.ed.gov/offices/OSFAP/DCS/forms/Request.For.Hearing.pdf

Thats a link to the form you need to fill out.

Here is the form you will need to prove this amount is a financial hardship for you:


www2.ed.gov/offices/OSFAP/DCS/fs.pdf

Send that stuff in.