student loans

by Patrick Smith

I have a company that sent me a letter that they are garnishing my wages. Is there anyway I can keep them from doing this, if I re-enroll in another on-line course and get that loan rolled into a finacial aid package.

Comments for student loans

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Jul 27, 2012
student loans

You did not indicate if the loan you've defaulted on is a private or a federal loan. If it's a federal loan, it's unlikely that you can stop the garnishment unless you can prove somehow that some procedure related to the collection of your loan was not followed properly. That will be difficult to do. If it's a private loan, filing for bankruptcy would stop the garnishment, but that is a big step and one you should never take without first consulting with a bankruptcy attorney.

Be aware that if the loan is a private loan, the lender sued you and got the court's permission to begin garnishing your wages. Therefore, you would have received notice of the lawsuit and had the opportunity to explain in court why you had fallen behind on the loan. You might also have been able to work out a payment agreement with the lender in exchange for it's dropping the lawsuit against you.

And, if it's a federal loan, you would have received numerous notices asking you to pay the loan and warnings about what would happen if you did not. And since you did not take appropriate actions, the garnishment began. (The federal government does not have to sue you to garnish your wages when you default on a federal student loan.) However, before the garnishment began you would have been given additional opportunities to try to avoid it and to request a hearing about your situation. I assume you did not do any of these things.

I tell you this because it's important to understand that ordinarily, when you are struggling to pay a debt, you have numerous opportunities to work something out with the creditor and avoid being in a really bad situation like you are in now. For example,
whether you defaulted on a private student loan or a federal loan, that fact will be in your credit history, which will make it unlikely that you will be able to get additional private financial aid (or any other kind of credit). However, the default can only be reported for 7 years and 6 months. And, if you defaulted on a federal loan, as long as the loan is unpaid, you will be ineligible for any additional federal student aid.

At this point, I recommend that you read the information at this site, to see if you find any helpful information there. It includes some phone numbers you may want to call to see if there is any possibility that you can set up a payment plan to stop the garnishment. It's unlikely however given that you've allowed your student loan debt problem to get to this point, but certainly worth a try. Again, filing for bankruptcy is another option, but only if the loan is a private loan.

Sep 17, 2014
Student loans default
by: Anonymous

I have defaulted on my private student loan with my wife as a cosigner. Will this impact my daughter from obtaining credit for her future loans ?

Reply from

Federal loans don't require a cosigner so if she gets federal loans it shouldn't be a problem. If, however, she tries to get a private loan, which often requires a cosigner, it could be an issue.

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