Student Loans - do they fall off?

[MarcinXP]

Just to make this quick, I defaulted on Student Loans in 2006 and now my wages are being garnished every check. No judgement on my credit so thank god for that, and my student loans were supposed to fall of as of March of this year. I checked Experian yesterday and fall off date dissapeared and now it says "Assigned to Government"...umm..what gives? I dont want this on my credit past 7 years. I thought it was going to fall off just like every other baddie...I cant have this on it for 10+ more years.

What to do?

[Wanka77]

Students loan are completely different from any other unpaid bill.  Students loan will follow you for the rest of your life if left unpaid.... Not only will you have your wages garnished but your income tax return as well among others.  You need to contact the DOE (Dpt of Education) and be placed on  Rehab immediately ( Usually will take 9-12 mos) to be in good standings,  However, The OC will not remove the CO until 7+ years from 1st delinquency.   I hope this helps.

[MarcinXP]

Well they are garnishing my wages, but there is not judgement on my credit or my file, infact I never got anything. Also I do get my tax refunds and have been for years. The 7 years from 1st deliquency has already passed and for some reason the fall off date changed from MARCH 2013 to PERMANATELY ASSIGNED TO GOVERNMENT in my Experian. Should I dispute this tradeline now that it should be gone

[atarvuzdar]

As was mentioned, federal student loans aren't like other obligations that age off your report after 7 to 7.5 years. It shouldn't fall off, and more likely than not the student loan tradeline will be updated every month to show your delinquent status for a very long time (unless you pay them off). If your wages are already being garnished I wouldn't poke the big bear by disputing the tradeline since you really have no standing to. It'll get you nowhere and might cause other action on the part of the gov't.

[InvincibleSummer3]

And just to throw this out there- they don't have to have a judgement in order to garnish or seize returns. As its been pointed out, student loans aren't like other obligations. Entirely possible you got lucky somehow with your tax returns. I defaulted in 2008 and I wasn't listed for the offset program until 2011.

You could rehab the loans if you'd like to get your credit report cleaned up faster, but the rehab payments would be additional to the garnishment. Or, you could just wait it out. But there's no error in reporting, so there's nothing to dispute to get it off faster.

[twall06]

If you rehab them the garnishment will stop . Had it happen to me they started granishing my pay I called set up the rehab process sent a release to my employer that day to stop the garnishment. And rehabbing them was much cheaper for me instead of them taking about 500 a month out of my check I'm paying 250 a month.

[SLbaddie]

twall6, do you mind sharing the servicer that agreed to pull your garnishment upon starting rehabilitation?  Everything I've read as said that you have to go through rehab first before they will pull your garnishment.

[twall06]

NCO also I had some more through FMS same thing both times once I set up payments they faxed the papers to hr to stop the garnishment .

[SLbaddie]

Let's hope I get so lucky!  I have to set up rehabilitation with 3 lenders but with my wages being garnished it's going to tight!

[twall06]

Call them and tell them you cant afford both they should release the garnishment. But maybe I was just lucky .