Hi, Everyone!!
First time post on student loan forum....did'nt think I'd ever have to but, here I am.
Ok. So, i received a letter from Pioneer CA stating possible wage garnishment if i don't call and set up some kind of payment arraingements.
"NOTICE OF POTENTIAL ADMINISTRATIVE WAGE GARNISHMENT PROCESS"
I'm not sure as to how to go about this?
My loans are off my credit report as of 2016. The school i went to is now CLOSED!!!(WESTWOOD COLLEGE) I do not qualify for forgiveness because I had to have still been enrolled during the closing of the school and at least 120 days out before the closing of the school.
I, on the other hand, had a medical emergency operation during the time i was attending. I was told by the administration of the school that I would be able to take a medical leave and my attending time would basically freeze and start again when I returned. Well, I returned only to be told that I could not attend again and that I would have to REregister and pay ALL OVER again. THAT was $17K!!!! So, I couldn't afford to go back and finish and I wound up just giving up and not going. I was TEEEE'D to say the least!!
So, now I don't know what to do with this letter and whether or not my wages will be garnished if I just ignore it??? I don't want to but, I don't make enough at the moment to take on another bill!!!
Any GREAT ADVICE would be much appreciated. I'm in Texas btw in case that matters...?
TIA
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Thanks for the quick reply!👍
But, WOW! That is so crazy. I mean, I get it, it’s mine but, geez...the SCHOOL is no longer OPEN!! Lmao!! What a joke!! And to top it off they were sued in the state of Colorado for over 4.2 mil in damages and reimbursements!! Holy Cow!!
It’s not on my credit report but, once I rehab these loans they will be, correct? But, it’ll be a positive TL reporting, right? Showing the DoFD as if I’ve never been late or defaulted? Is that my understanding, as I’ve read post after post???
Wow! I’m floored over this! This WILL be tough to try and pay with very little income at the moment. But, from what I’ve read and gathered, they do not care!!! YOU WILL PAY!! This is NOT what I need at this moment as I’ve just started rebuilding...UGH!!!
But, WOW! That is so crazy. I mean, I get it, it’s mine but, geez...the SCHOOL is no longer OPEN!! Lmao!! What a joke!! And to top it off they were sued in the state of Colorado for over 4.2 mil in damages and reimbursements!! Holy Cow!!
It’s not on my credit report but, once I rehab these loans they will be, correct? But, it’ll be a positive TL reporting, right? Showing the DoFD as if I’ve never been late or defaulted? Is that my understanding, as I’ve read post after post???
Wow! I’m floored over this! This WILL be tough to try and pay with very little income at the moment. But, from what I’ve read and gathered, they do not care!!! YOU WILL PAY!! This is NOT what I need at this moment as I’ve just started rebuilding...UGH!!!
@Brooklyn2018 wrote:
Thanks for the quick reply!👍
But, WOW! That is so crazy. I mean, I get it, it’s mine but, geez...the SCHOOL is no longer OPEN!! Lmao!! What a joke!! And to top it off they were sued in the state of Colorado for over 4.2 mil in damages and reimbursements!! Holy Cow!!
It’s not on my credit report but, once I rehab these loans they will be, correct? But, it’ll be a positive TL reporting, right? Showing the DoFD as if I’ve never been late or defaulted? Is that my understanding, as I’ve read post after post???
Wow! I’m floored over this! This WILL be tough to try and pay with very little income at the moment. But, from what I’ve read and gathered, they do not care!!! YOU WILL PAY!! This is NOT what I need at this moment as I’ve just started rebuilding...UGH!!!
I don't believe it will show DOFD as it will be reporting as a positive tradeline - an account with a DOFD is inherently a negative account. Rehab removes delinquency status but does not remove lates. (Not sure how this works on loans that are no longer reporting.)
Are these loans private or federal loans? If these are federal loans then you'll have the option of selecting an income-based repayment plan.
They are FFEL. Sum of $8,296. With interest and CA fees in the tune of $13$k.
My questions are: DO I HAVE TO go thru the CA? Can I, if applicable,deal with Educational Credit Management Corp?? Or do I HAVE TO deal with the CA?? Can I take out a personal loan and just pay them off?? Will I be able to “Settle For Less?” If I pay a lower lump sum??
Really making me nervous 😬
TIA👍
My questions are: DO I HAVE TO go thru the CA? Can I, if applicable,deal with Educational Credit Management Corp?? Or do I HAVE TO deal with the CA?? Can I take out a personal loan and just pay them off?? Will I be able to “Settle For Less?” If I pay a lower lump sum??
Really making me nervous 😬
TIA👍
@Brooklyn2018 wrote:
They are FFEL. Sum of $8,296. With interest and CA fees in the tune of $13$k.
My questions are: DO I HAVE TO go thru the CA? Can I, if applicable,deal with Educational Credit Management Corp?? Or do I HAVE TO deal with the CA?? Can I take out a personal loan and just pay them off?? Will I be able to “Settle For Less?” If I pay a lower lump sum??
Really making me nervous 😬
TIA👍
I would research your options on the federal student loan website. TBH, I'm not exactly sure how to get the whole process started (i.e. who you need to call and who you need to work through) as both times I went into default a new loan servicer proactively contacted me about taking on my loans and they basically did all of the work for me.
@beutiful5678 wrote:
@Brooklyn2018 wrote:
Thanks for the quick reply!👍
But, WOW! That is so crazy. I mean, I get it, it’s mine but, geez...the SCHOOL is no longer OPEN!! Lmao!! What a joke!! And to top it off they were sued in the state of Colorado for over 4.2 mil in damages and reimbursements!! Holy Cow!!
It’s not on my credit report but, once I rehab these loans they will be, correct? But, it’ll be a positive TL reporting, right? Showing the DoFD as if I’ve never been late or defaulted? Is that my understanding, as I’ve read post after post???
Wow! I’m floored over this! This WILL be tough to try and pay with very little income at the moment. But, from what I’ve read and gathered, they do not care!!! YOU WILL PAY!! This is NOT what I need at this moment as I’ve just started rebuilding...UGH!!!I don't believe it will show DOFD as it will be reporting as a positive tradeline - an account with a DOFD is inherently a negative account. Rehab removes delinquency status but does not remove lates. (Not sure how this works on loans that are no longer reporting.)
Are these loans private or federal loans? If these are federal loans then you'll have the option of selecting an income-based repayment plan.
I don't think this is true. I went through rehab and after they removed the default status and they removed all missing/late payments before the rehab started. It now just shows no data reported. YMMV depends on the servercer.
One more note. After rehab, I payed on-time for 3 years. Now my loans are refinanced with Earnest.
@Sloedough wrote:
@beutiful5678 wrote:
@Brooklyn2018 wrote:
Thanks for the quick reply!👍
But, WOW! That is so crazy. I mean, I get it, it’s mine but, geez...the SCHOOL is no longer OPEN!! Lmao!! What a joke!! And to top it off they were sued in the state of Colorado for over 4.2 mil in damages and reimbursements!! Holy Cow!!
It’s not on my credit report but, once I rehab these loans they will be, correct? But, it’ll be a positive TL reporting, right? Showing the DoFD as if I’ve never been late or defaulted? Is that my understanding, as I’ve read post after post???
Wow! I’m floored over this! This WILL be tough to try and pay with very little income at the moment. But, from what I’ve read and gathered, they do not care!!! YOU WILL PAY!! This is NOT what I need at this moment as I’ve just started rebuilding...UGH!!!I don't believe it will show DOFD as it will be reporting as a positive tradeline - an account with a DOFD is inherently a negative account. Rehab removes delinquency status but does not remove lates. (Not sure how this works on loans that are no longer reporting.)
Are these loans private or federal loans? If these are federal loans then you'll have the option of selecting an income-based repayment plan.
I don't think this is true. I went through rehab and after they removed the default status and they removed all missing/late payments before the rehab started. It now just shows no data reported. YMMV depends on the servercer.
One more note. After rehab, I payed on-time for 3 years. Now my loans are refinanced with Earnest.
https://studentaid.ed.gov/sa/repay-loans/default/get-out
If you rehabilitate a defaulted loan, the record of the default will be removed from your credit history. However, your credit history will still show late payments that were reported by your loan holder before the loan went into default.
Sounds like you got lucky. My lates still show. :/