It's come to this: Order of Withholding

[tampa-chrissie]

My husband has not dealt with his student loans that have been in default for 5+ years. We've discussed a settlement or payment plan, but he's never followed through with setting it up. Help me to not kill him.

 

Earlier this week "someone" delivered a Order of Withholding From Earnings to him at work and his appearently his HR dept. They started taking 15% of his after tax income. My first question is about the order. Does withholding require any approval by the courts or are they free to just send the letter? The payments are going to OSI Education Services if that helps any. My next question is what's our best next step?

 

 

Thanks in advance.

[LynnInMN]

My husband has not dealt with his student loans that have been in default for 5+ years. We've discussed a settlement or payment plan, but he's never followed through with setting it up. Help me to not kill him.

 

Earlier this week "someone" delivered a Order of Withholding From Earnings to him at work and his appearently his HR dept. They started taking 15% of his after tax income. My first question is about the order. Does withholding require any approval by the courts or are they free to just send the letter? The payments are going to OSI Education Services if that helps any. My next question is what's our best next step?

 

 

Thanks in advance.

 

Admin wage garnishment is authorized by congress. No court order required.

 

He would have been sent a notice of impending garnshment, roughly 60 days ago.

[Stryker]

OP, how much are we talking here?

[tampa-chrissie]

7K

[Stryker]

Have you looked into rehab?

[Cynic]

At this point, rehab = paying voluntarily + the involuntary garnishment payments. OP shouldn't kill her SO... but should understand gross negligence on his part is what lead to this, and make her own decision accordingly.

 

To reiterate: NO ruling is required by any (lower) state or local court anywhere in the USA. Per FEDERAL LAW, ED (United States Department of Education) or a ED-approved Guarantor operating under Title IV of the Higher Education Act may collect a defaulted federal student loan in any state of the Union through administrative wage garnishment. An employer is liable for any earnings they failed to withhold plus interest and damages. A debtor would have been sent a notice advising this would happen and giving one last chance to voluntarily repay 2 months ago.

 

That's it.

[tampa-chrissie]

We opted to pay off the loan using our HELOC. The interest is higher, but it stopped the withholding. Now I just have to work to get this removed from his credit. Two years?