I'm in wage garnishment

[Anonymous]

Ok, so i THOUGHT i could still rehab my defaulted loan but apparently it has gone too far and they are going to garnish my wages and i can't have the default deleted. HAs anyone gotten out of this? or should I ask, recovered their credit after this has happened? I know it wont happen any time soon, but do u think i can improve my credit in about 4 years? What are some positives i can add to my credit ( am already asking mom to add me to her long time good standing cc). Help. I know i'm in deep , i just need to know if i can recover from this. the toal SL is 3,200. not much. just moved around alot and lost track of the paperwork.

[Anonymous]

This is what the emiled me. I dont understand because it first says i dont qualify for rehab, then it says I MAY qualify... AM I reading this wrong?

Upon review of your account, you loan is currently in the administrative
wage garnishment process, once your account is in the Administrative
Wage Garnishment process, establishing a voluntary repayment agreement
is not an option. Your account will be removed from the Administrative
Wage Garnishment process and your employer notified of such, upon
payment of your account in full.



Accounts that are in Administrative Wage Garnishment may qualify for
rehabilitation if a voluntary repayment agreement is established. You
will need to agree to make additional voluntary payments, in addition to
wage garnishment payments, equal to a 10 or 15 year payout. Once this
agreement is established, you must make 9 consecutive, on-time (within
15 days of the established payment due date), voluntary full monthly
payments, if you are interested please contact our office.

[Anonymous]

blue, are you positively sure that you can't rehab? you say they are "going" to garnish your wages...have they sent an administrative order to your employer? in my situation, they sent an administrative wage garnishment order to me as a little threat, and had not actually sent it to the employer yet. you should call the lender/guarantor/collection agency who has your loans and try to work out a rehab right now. for a loan that small, the payment would be nil, if you are still eligible! i got this from the federal student aid website: ____________________________________________________________________________________ You may want to consider rehabilitating your defaulted loan(s). Advantages of rehabilitation include: * Your loan(s) will no longer be considered to be in a default status. * The default status reported by your loan holder to the national credit bureaus will be deleted. * You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance, and Title IV eligibility. * Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund.

[Anonymous]

oh yes, what that email means is that they will continue to garnish your wages, but during that time you can work out a rehab payment agreement IN ADDITION TO the wage garnishment. so, if they are taking 150 bucks a month, you can call and work out additional payments on top of that 150 to get yourself rehabbed in the 9 months. i highly suggest that you do this. even if you have to get a part-time job. if you dont do it the rehab way, your cr's will show the default even if you pif via wage garnishment. please call them!

[Boswd]

What you need to do ASAP, because this almost happend to me about two years ago.   They even contacted my Payroll department and everything.,  is to go to this website    http://www.ed.gov/offices/OSFAP/DirectLoan/index.html and see if your loan qualifies, If it does, it will stop the wage garnisment and collection procedures.  but you must do this ASAP since the whole account process takes up to 90 days.   But in the meantime it will halt all collection activities.    Your loan will then be taken over by the department of Education.    There is contact number available on the website.   Don't delay.   If you only do one thing today let it be this, you do not want wage garnishment.    Also after filling out the application and talking to customer service,  even though the department of Education will contact them do a follow up with the CA who is trying to garnish your wages.   You can stop it but you can't wait any longer.   

[Anonymous]

OK Guys, here's the deal: I called TG and they said they had already received acknlowdegement from my payroll office (Im a teacher) to garnish wages . The yreceived this in April, I have'nt seen any deductions yet, so i'm expecting them to do it in July. I owe $3,418 on my loan. They will deduct 15% of my salary , which comes out to $333 a mo, so, I will have paid my loan in full in about 10 mos.  The only other thing they said I can do is pay up front or give additional payments to pay it off faster, but they will still continue to garnish and it will still show as defaulted on my credit report. The only thing i can do is pay faster and it'll show "defaulted paid off (whatever date)". At this point will it make much of a difference if I pay it off faster or am i still Royally screwed with a default on my CR and a couple months won't make a difference?

PS: Thank you guys for the information, I wish I had found this stuff a couple of months sooner!

[Anonymous]

i cant see why you cant do a rehab anyway, unless it is bc they know that they will have the entire balance in 10 months anyway.  i would contact the federal student aid ombudsman @ http://www.ombudsman.ed.gov/ to make sure you arent getting screwed.  i would do my damnedest to get in a rehab. 

[Anonymous]

I guess I could TECHNICALLY give 9 consecutive payments in addition to the 333 they are already deducting, so I guess I would have to take that 10th monthly garnishment payment of 333, divide it by 9 and send those off? I would just pay it off 1 month sooner. One more question, Is it reported for 7 seven years from the day it's PAID OFF, or from the day it was reported as default?

[Boswd]

I would still go for the  William D. Ford Direct Loans and see if you can still get into it.   It may not be too late since they haven't garnished anything yet.    I would without a doubt go for it today.  At least call customer service and see if there is anything you can still do.   It's worth a shot and you'll have a better monthly payment options than what will be deducted from your paycheck.

[Anonymous]

boswd, I'm not really worried about the wage garnishment, I was planning and prepared to pay off the loan in 9 mos through tthe rehab program as it is, it's just they beat me to the punch so to speak, lol. I was just trying to get the rehab done so they can remove the default from my CR. However, I think I have finally come to realize that they don't DELETE the default, they simply stop REPORTING it as a default, so i think either way there will be a default on my CR and I'm Screwed