Edfund Wage Garnishment - Help!

[Anonymous]

I need some help figuring out what my options might be. Here's the situation.

I received notice on Friday that Edfund is garnishing my wages at 15%.I owe a total of $2,235.23. I called them and they said I'm not eligible for any loan payment plan at all. They told me my options were to PIF or the garnishments would occur. The closest thing they said I could do was register for "hardship" to see if they can get the garnishment amounts lowered.

The original loan on my credit report is listed as ACS/Wachovia for $1750.

I searched the forums and kept reading about all kinds of rehabilitation programs and the like that are available on student loans. Is Edfund just stonewalling me and not telling me about my options or what?

BTW, I never received anything in writing from them, although I did move since setting up the account, so that could affect it.

Thanks for your help in advance!

[LynnInMN]

Did you get a letter in the mail or did your employer inform you of the garnishment?

[Anonymous]

My employer notified me. The only reason I knew who to call is because I asked them for the notice. I pulled my credit report as well, and Edfund is not listed, just ACS/Wachovia. The account under ACS/Wachovia states Student Loan Assigned to Government.

[Anonymous]

I just was able to pull this information off of the USDE website.

Type of Loan - Stafford Subsidized

Loan Amount $3500

Loan Date - 10/15/2007

Disbursed amount - $1750

Cancelled amount - $1750

Outstanding Principle - $1876 

Outstanding Interest - $56

This might help a bit. I only got half of the 3500 annual loan because I went for 1 semester. By the time the loan was disbursed I had to alread pay for my tuition, books and everything out of pocket and it was a horrible burden. I couldn't afford to use this model of getting reimbursed out of pocket over a month after class had started.

[LynnInMN]

Edfund is an old client of mine...worked their accounts for years.  Edfund is the government guarantor for the state of california.

Edfund sent a pre-garnishment notice to the address they had on file.  It is the borrowers responsiblity to keep their lender/servicer/garantor informed of their current address and phone number.  Since you did not update them with your change of address, you lost your 30 day window to appeal the garnishment and the garnishment will go forward.  You can make rehab payments over and above your garnishment to get out of default.

[Anonymous]

Hmm. I see.

What are the chances on the hardship application they are sending me? 

I moved back in with my dad to help him with his mortgage, so almost $400 a month is really going to hurt.

Thanks for your help! 

Message Edited by Anathama on 02-23-2010 12:52 PM

[LynnInMN]

If you garnishment is around $400 per month, that would translate to $2600 a month take home.  You will be allowed reasonable rent/mortgage for your family size  (your father is not your family), reasonable food, gas, insurance and other expenses.  Do you have kids?  If not, I do not see any hardship.

[Anonymous]

Hmm, more bad news. I guess I should just tighten the belt and grin and bear it for the next 6 months or so.

I had a large unexpected debt that I had to take care of last year, and adjusted my taxes to allow me to take care of it. The result of which being, i will owe when I do my taxes. A lot. Either of these I could handle on thier own, together, that is what's going to be hard. 

The bright side is that things will be a lot better in the next 6-9 months when all of this is behind me.