Urgent, default help!!

[Gettingitright22]

I was able to finally get my info from the Federal Student Aid database and I am in default on two things marked Stafford Unsubsidized for a total of just under $3000, here my question, they garnished my taxes last year, if they do the same this year will it be taken care of and I will no longer be in default or should I call and speak to them and try to set something up, I am trying to get a mortgage within the next year and do not want my chances ruined because of this.

Thanks in advance!!!!

[tfkallday]

I can not speak on the wage garnishment thing but if I were you I would call them and get yourself set up in the fed. rehabiliation program asap.  If you do it now you will almost surely have those defaults wiped off of your credit report in a little less than a year..

[Gettingitright22]

Thanks! I plan on calling today and asking to start the rehab, Idealy I want to make a couple of payments then give them the rest at tax time (w/out being garnished) will the default be removed immediatly upon payment?

[SCF]

With the rehab program, you have to make 9 on-time monthly payments to establish a good payment history before the loans are brought out of default and sold to a new servicer.  You cannot pay ahead, although many people here have reported being able to make their final payment just after the 8th payment and speed up the process a bit.

Simply paying off the loans will not remove the default notation - the best way to do that is arrange for rehab and follow through with the program.  Entering rehab should also stop your garnishment.