Old defaulted NDSL loan

[tj100]

I want to thank very much for your for help on my other posts. You have been a wealth of information and it's just incredible that you offer your assistance and expertise to help others and dedicate so much of your time. From your answers to my posts and my reading other posts, I think I know how to proceed and what I should reasonbly expect to encounter. I have one more defaulted loan that could use some help on, if I haven't worn out my welcome yet.

It is my old defaulted guaranteed Nation Direct Student Loan which is now held by DOE, which is also being serviced by a CA. DOE started garnishing my wages (15%) but only garnished one paycheck, my last paycheck before my work contract ended. Now I am unemployed. I was thinking of calling DOE. Are they known for being willing to make a settlement for less than the full amount in circumstances like mine, since it would be better than their getting nothing at all? Or would I have a better chance with the CA?

Also, I would like to know if DOE will stop garnishment if I tell them I am unemployed. They state on their website and in the info they sent me, that anyone who has been employed for less than 12 months at their current job will not have their wages garnished, if they were involuntarily seperated from their previous job. Well, that will certainly is my case (in the future, the next time I am employed). If I inform DOE that I am unemployed, will they send a letter to my last employer ceasing garnishment? The reason I ask is very important. I will probably be able to get another contract job with the same employer in a couple of months. If I do, would it or should it be considered a new position and not be subject to garnishment? If DOE doesn't send a letter ceasing garnishment I guess my pay will garnished anytime I work again at that place?

What's the best way to proceed, short of paying off the entire amount now? Thanking you very much for any of your generous expert help.

[TxQuiltGirl]

Rehab. Same answer as before, I believe. Rehab.

[tj100]

I sorry, but I don't think the answer last time was rehab. Also, now I'm trying to find out if I can stop garnishment. Thanks.

[LynnInMN]

now held by DOE, which is also being serviced by a CA. DOE started garnishing my wages (15%) but only garnished one paycheck, my last paycheck before my work contract ended. Now I am unemployed. I was thinking of  calling DOE. Are they known for being willing to make a settlement for less than the full amount in circumstances like mine, since it would be better than their getting nothing at all? Or would I have a better chance with the CA?

 

Generally yes you can get a settlement. If the account is assigned to a CA, you must work with them. 

 

Also, I would like to know if DOE will stop garnishment if I tell them I am unemployed. They state on their website and in the info they sent me, that anyone who has been employed for less than 12 months at their current job will not have their wages garnished, if they were involuntarily seperated from their previous job.

If your job was a contract that ended, that is not an involuntary seperation.  It has to be a lay off or firing situation. 

 

Well, that will certainly is my case (in the future, the next time I am employed). If I inform DOE that I am unemployed, will they send a letter to my last employer ceasing garnishment?

Actually it is your last employers responsiblity to notify the DOE that you are no longer employed.  And there is  a spot for the employer to enter if you are being recalled or coming back.

 

The reason I ask is very important. I will probably be able to get another contract job with the same employer in a couple of months. If I do, would it or should it be considered a new position and not be subject to garnishment? If DOE doesn't send a letter ceasing garnishment I guess my pay will garnished anytime I work again at that place?

 

It is very likely that the garnishment will immediately start all over again.

What's the best way to proceed, short of paying off the entire amount now? Thanking you very much for any of your generous expert help.

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[tj100]

If I do I settlement, will the loan reappear on my CR? It's off now due to its age. LynnInMN, Thanks again for your words of wisdom and all your help.

[LynnInMN]

It shouldnt appear at all!!

[tj100]

Again, great words of advice and knowledge. LynnInMN, thanks very much for all your help. This forum is truly lucky to have you. I now have the info and courage to start digging myself out.

[TxQuiltGirl]

Have you appealed the garnishment decision? There is a lot of good information here on garnishment and how to get it stopped if you just search for it.