Wage garnishment unemployment

[Anonymous]

So I voluntary will be quitting my job and will be starting a new one in March. Department of Education was garnishing my wages at my current job. What should I do after I quit my current job? Contact them and let them know I am no longer employed to defer and ask if I can get rehab after I get a new job instead of garnishment?

[SCF]

Honestly, you should begin rehab on your loans as soon as possible.  With the new rules that went through, the starting point for rehab payments is the IBR formula, so they should be very low while you are unemployed and stay reasonable even if you start working again.  From what I've read on these forums, CAs usually stop the garnishment at some point during rehab - I've seen examples of 3-6 months in.

Rehab is greatly preferable to garnishment, and will have benefits for your credit as well.

Edit: After a bit more reading, it looks like the garnishment can be suspended at your request after 5 on-time rehab payments.  This is the article I've read, it seems like a solid overview of the changes to the rehab program.

[Anonymous]

Thank you so much for that info! I will get the ball rolling tomorrow. 

One thing that concerns me a bit is the Department of Education who is garnishing my wages possibly going after my bank account. I read that they can do that after you become unemployed. Should I just take that money out and put it under the pillow? 

[Anonymous]

Called Transworld Systems and CBE group, told them I will be unemployed starting Friday. Both sent me paperwork to fill out, my payments will be minimum of $5 which I decided to set at $25 for now, after the 5 months, the loans will be rehabilitated. Yay!