AES Question

[jross1028]

I have completed 6 months of payments in rehabbing my defaulted student loans. However, I just found out that my tax refund was taken by AES in addition. Is there anything for me to do? I thought I had reached an agreement with them as far as how much I could pay per month, yet they just took $800 more. Could I negotiate with them to have that amount count as payments?

[LynnInMN]

I have completed 6 months of payments in rehabbing my defaulted student loans. However, I just found out that my tax refund was taken by AES in addition. Is there anything for me to do? I thought I had reached an agreement with them as far as how much I could pay per month, yet they just took $800 more. Could I negotiate with them to have that amount count as payments?

 

Nope. Tax offset is deemed a garnishment and does not count towards payments. Some lenders will take it regardless of your payment status.

[terpndebt]

what do you mean that it dosent count towards payment, dosent the garnishment amount reduce the amount owed?

[LynnInMN]

what do you mean that it dosent count towards payment, dosent the garnishment amount reduce the amount owed?

 

The tax offset does not count towards the rehab payments as rehab payments have to be made voluntarily. Yes it does go to reduce the balance.