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I need help with my student loan. They are threatening garnishment.

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Anonymous
Not applicable

I need help with my student loan. They are threatening garnishment.

My student loan balance is @1300. It has defaulted and was with Asset Acceptance and now COnserve has it and they are telling me that the balance is to small so I can not rehab it. Is that true? They said I will have take the settlement of 1200 and pay it in 3 payments. I can not do that I have a small child and a baby on the way and of course bills like everyone else.

I need help they are threatening to garnish my wages. What do I do?
Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: I need help with my student loan. They are threatening garnishment.

BUMP

I want to know about this too. I fell for this kind of threat with my student loan when they called me at my work. I believe they can't garnish without going to court first but I may very well be wrong.

Message Edited by ChaoticKinesis on 10-26-2007 08:24 PM
Message 2 of 5
Anonymous
Not applicable

Re: I need help with my student loan. They are threatening garnishment.

You should still be entitled to the Rehab program- call someone at DOE.

edu.gov.
Message 3 of 5
Anonymous
Not applicable

Re: I need help with my student loan. They are threatening garnishment.

I hate to be the bearer of bad news but I had the same situation.  I didn't and still don't know about rehab but I do know that everytime I tried to talk to DOE they referred to the ca and everytime I talked to the ca they were brutal and always had me in tears.  I owed 5000 and they refused to make any payment arragements, they wanted all 5000 or garnish my wages.  I had no choice and my wages were garnished.  If this does happen, you may be better off.  They took about 200 dollars a month over 18 months.  In the end, the debt was paid and since I wasn't used to having that money, I now keep it in savings.  As far as garnishment goes, I don't think they need to go to court first when it comes to student loans.  At least I wasn't served with any papers.
Message 4 of 5
creditgirl
Regular Contributor

Re: I need help with my student loan. They are threatening garnishment.

Do you guys have any other student loans?  If you do, it may be easier for you to do a consolidation loan and include the defaulted loan.  It may take a while but generally a collection agency is happy when you can prove to them that you are consolidating because they KNOW they will get their money. 
 
If you have other loans, I'd go online RIGHT now and start the process.  Make sure to print out a copy of your application so you will have proof for the collection agency.  Or you can make a 3 way call between yourself, the collection agency and your consolidation company to verify that you are actually consolidating and including the defaulted portion into your consolidation loan.
 
That is what I would do.  Also, once the loan is consolidated, you get all your federal aid eligibilty back.  Also, the original student loan company that is listing the default on your credit report MAY remove the default status (technically the loan isn't in default once it's paid). Or at the very least they will add it's been paid in full through consolidation which is better than just a straight out default.
 
Let me know if you have any other student loans and who they are with and I will help as much as possible.
 
creditgirl


Message Edited by creditgirl on 10-27-2007 04:17 PM
FICO 9/1/07 FICO 9/26/07
TU--534 TU--538
EX---552 EX---562
EQ---454 EQ---454
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