02-07-2012 07:43 AM
Hi All - First off, wanted to thank everyone who provides advice on this site. Since I joined last summer, I have gotten a public record judgement deleted from my reports and also had two other accounts removed with pay-for-delete agreements. My score has risen from the high 500s to around 650.
The very last step I have, and of course I saved the best for last, is my student loan issue. I have a defaulted student loan that was with the Dept of Ed and taken over by a collection agency, Diversfied Collection Services. DCS has placed a wage garnishment on me, and for the past two years, I've had roughly $400/month taken from my work paycheck. and have about $30,000 left to pay off. I've read a ton about student loans on here, and a lot of it is really complicated. My big question is:
1) Does the collection agency HAVE to agree to a nine-month rehabilitation program if I agree to enter into one? I understand I would have to make 9 monthly payments on time along with the garnishments. Money would be tight, but I can afford to do this.
Is there anything else I can offer to rid myself of the garnishment? I can't afford to pay it off in full, but I can offer more money than the garnishment. Wouldn't they want more money? Or are they just happy with the garnishment so they don't even care.
Any advice on how to tackle this would be appreciated.
02-07-2012 09:49 PM
I have read that other posters have had success with the CA's agreeing to a 9 month rehab program. It's worth a try.
If you offer more money to the CA, they would accept it. But be careful with that. Make sure you can afford to give them extra.
Let us know how things progress...
05-29-2012 02:07 PM
Hi, I joined this group because I am in the same situation you are in. I am at a loss, it's been over a year since the garnishment started and I have yet to get a statement or know for sure if I can deduct any of the interest that has been paid to that company- DCS. They fooled me, and so did Justin at "Student Loan Recovery", I paid them $500.00 to get all my loans consolidated, and they said they would stop the garnishment, before it started. Nothing happened, how did you get things back in order? I have the exact amount garnished and that amount owed to DCS. Thank you.
05-31-2012 07:00 PM
UC1212 - if you are paying the CA, the interest is not tax deductible. It would be if you were paying the lender directly.
As far as I know, there is no fee to consolidate your loans.
As for the garnishment - that can only be done with a court order. The court order would have specifics regarding the garnishment. Have you gotten a copy of it? If not, then ask payroll for a copy or go to the courthouse and get a copy.
06-12-2012 01:28 PM
There are other options to handle garnishments and defaulted loans. Basically, you have to remove the default status in order to make sure that your loans aren't being garnished for. One way is to consolidate. I did it through a company that is accredited, however I'm not able to post the name or number due to this sites terms and conditions. Message me, and I'll be able to let you know the company that helped me. I had a pretty heavy garnishment of 25% from this one CA that was pretty mean. They handled it in about 8 weeks, and then got all my loans into one and on a feasible payment arrangement. Let me know, I'll get you their information.
06-13-2012 03:36 PM
I came across this post, and though you have probably contacted DCS by now, I just wanted to give you some advice based on my experiences with them. They are easier to work with than I thought they would be, but it has been really difficult to get them to update my credit report, etc. now that I have completed my rehab. I have to call them all the time, and even then they don't do everything I ask them to.
Also, according to the Dept. of Ed., it showed that a few payments of my payments were missing, even though I had paid them. The way DCS' automatic payments showed up in my bank statement, they didn't have enough specific information to "prove" that they were payments made to DCS. If I had had cancelled checks, I could have resolved it with DOE right then and there. But because DCS signed me up for a direct debit program, I had to have DCS update the information in the system for me. Which was another long wait.
I also have the direct number for a supervisor there, if you end up having to take care of your rehab. yourself, after the 9 payments like I did. For some reason, whenever you call the 800#, it always put you thru to your assigned rep., so getting a supervisor's number was pretty exciting.
Just a few things I wanted to let a fellow Red Sox fan know!
06-18-2012 12:09 AM
i am messaging you b/c you were kind enough to offer the name of the company that helped you. I am dealing with this DCS people too, I didn't realize what? they took over all people who have student loan debts? It's ridiculous. I am not being garnished and i've been offered the 9 month deal, but my loans are at 12%! and i owe more now than when i took out the loans, b/c of all the deferments, interest, penalties, etc. I would greatly appreciate your help. thank you so much.
06-29-2012 12:27 PM
Hi. I have just recently gotten a garnishment put in place against me for student loans. Do you know if they have to consider your household size and income or can they just garnish the flat 25%. Any help or information you can give me would be greatly appreciated. Thanks Becky
06-30-2012 12:12 PM
becky22 - if there is already a garnishment in place, not much you can do about it other than pay it. You have missed the opportunity for those things to be taken into consideration. For there to be a garnishment, then the OC/CA had to sue you in court and win. Then when there was no payment forthcoming based on the judgement, the OC/CA would have to go back to court and ask the judge for a wage garnishment.
If you have NOT gone to court yet, for the initial case, then you do have the opportunity to try to negotiate the amount. Either the CA or the judge may take into account the other factors.
You can ask the OC/CA to accept less, but that may require another court appearance since the garnishment is a court order.
07-05-2012 10:54 AM
Did your defaulted loans get consolidated? Would you mind telling me what company or bank did it? I currently have a few defaulted loans that I need to get consolidate.
Thanks in advance for the help!