My sister has a student loan garnishment of $12,000 pending. Is there anyway place she can get a loan to pay this off? A company that loans to people with poor credit and good income? She has no late payments on her credit. She is in the process of doing the Rehab thing but a garnishment is pending. Scared to death. It hasnt' gone through because they have her maiden name and it keeps getting kicked back fromt he court. She has credit scores of 550( I know...bad). Income is $85,000. She doesn't have any savings.
The loan is from 1985!!! Started out as $2500 and because she didn't take care of it...she's in this mess. Letters to inform her of this pending garnishment were never gotten. She said she would have defintely gotten on top of it if she knew about it. We think the letters must have been going to our childhood home address. We no longer have access to that house; sold. Or maybe they never contacted us. This is a Federal Loan. Any help would be appreciated.
Thank you so much!!!! So very very much for taking the time to answer. I sent this info to my sister. She has a phone interview with the Rehab people at 11:30 today. I guess she should tell them her name change. We were running from it thinking we could buy some time for the Rehab thing to go through. She's so scared. She has others loans that are in good shape and consolidated. This one was the only one...she didn't know they had SOLD this loan and thats why it was not under the consolidation with the other loans. Never got on piece of mail on this thing. It's ONE loan that's up for garnishment, not the others. She doens't even start paying the others until Feb. They are in total order and not defaulted.
Thank you again. I will keep you updated.
I went throught this 4 years ago.
My university was my loan servicer, and they had turned my defaulted loan over to a 3rd party collection agency.
I set up rehab with the collection agency, and afte making my 5th on-time rehab payment, I called them every day reminding them that they needed to stop garnishing my wages. I was fortunate because the collection agency knew the law, and got it taken care of quickly.
Remember, the law is on your side for federal loans that you're in the process of rehabbing. If you make your rehab payments on time, federal student loan servicers and the collection agencies they emply MUST comply with federal law regarding wage garnishment and credit reporting. If they don't, make sure you document everything, and contact the CFPB and federal student loan ombudsman.