Student loan garnishment

[saginaw1975]

I am transitioning jobs right now. I got an executive position with a company and I make about 10,000 more per year than I used to.

 

I have been in garnishment on my student loans for about two years now. I am still working there part time to make up for the garnishment that I am set up for.

 

Can I keep the garnishment the way it is?

 

Do I have to switch my garnishment to the new employer and/or do I have to be garnished at both jobs? Or do they choose the higher paying job and not garnish my part time job?

 

 

Thanks.

[Cynic]

They can garnish up to 15% of your disposable pay at both.

[saginaw1975]

They can garnish up to 15% of your disposable pay at both.

 

 

So it won't help me very much to get garnished at both jobs and work both jobs then? Would I be better off just quitting the part time job?

 

 

Also would "Van Ru" take over my loan and work out a better rehab plan? Right now i'm dealing with Allied Interstate and they want outrageous rehab payments.

[LynnInMN]

They can garnish up to 15% of your disposable pay at both.

 

 

So it won't help me very much to get garnished at both jobs and work both jobs then? Would I be better off just quitting the part time job?

 

 

Also would "Van Ru" take over my loan and work out a better rehab plan? Right now i'm dealing with Allied Interstate and they want outrageous rehab payments.

 

Van Ru would have to be assigned the account which isnt going to happen since Allied is already doing the garnishment.

 

How much do you owe?? Standard rehab payments should be set at 1% of your current balance.

 

Quit a job because they are garnishing 15%?? You are still taking home 85%. I could never understand the logic of quitting a job because of a garnishment.

[Cynic]

I agree with Lynn.

[ClaytonF]

I am transitioning jobs right now. I got an executive position with a company and I make about 10,000 more per year than I used to.

 

I have been in garnishment on my student loans for about two years now. I am still working there part time to make up for the garnishment that I am set up for.

 

Can I keep the garnishment the way it is?

 

Do I have to switch my garnishment to the new employer and/or do I have to be garnished at both jobs? Or do they choose the higher paying job and not garnish my part time job?

 

 

Thanks.

 

Don't tell them about your new job.

 

Remember what President Nixon said: Government is like a donkey. You kick it in the flowers and it takes 4 years to reach the brain.

 

I don't see what your rush is to give a collection agency money. You shoud post in the main credit forums. I think the people giving you advice here are debt collectors. LOL.

 

They should have gave you rehab 2 years ago but they are messing with your head. Don't give them a penny!

[OneStep]

I am transitioning jobs right now. I got an executive position with a company and I make about 10,000 more per year than I used to.

 

I have been in garnishment on my student loans for about two years now. I am still working there part time to make up for the garnishment that I am set up for.

 

Can I keep the garnishment the way it is?

 

Do I have to switch my garnishment to the new employer and/or do I have to be garnished at both jobs? Or do they choose the higher paying job and not garnish my part time job?

 

 

Thanks.

 

Don't tell them about your new job.

 

Remember what President Nixon said: Government is like a donkey. You kick it in the flowers and it takes 4 years to reach the brain.

 

I don't see what your rush is to give a collection agency money. You shoud post in the main credit forums. I think the people giving you advice here are debt collectors. LOL.

 

They should have gave you rehab 2 years ago but they are messing with your head. Don't give them a penny!

 

Rather, these people know the student loan rules, which it appears you don't. And the main credit forums would send the OP right back here. Defaulted student loans are not your ordinary collections.

 

To the OP: I had a garnishment for years, and when I first tried to do a rehab (not knowing anything about it) they wanted everything above my basic living expenses. No WAY was I going to do that, so I just left it alone. Then last year when they made their quarterly call I said 'look, I can send you $50 a month extra, but that's it'. They said 'oh, we can work with that!'. And now my loan has been rehabilitated and my monthly payment is less than what my garnishment was.

[LynnInMN]

Clayton...unless you know the student loan in's and out's, stay out of giving advise.

[saginaw1975]

Thanks everyone!

 

Not tell them about the new job??? What will happen?

 

Won't they find out? Won't they want retroactive payment of the money I could have been garnished?

[saginaw1975]

They can garnish up to 15% of your disposable pay at both.

 

 

So it won't help me very much to get garnished at both jobs and work both jobs then? Would I be better off just quitting the part time job?

 

 

Also would "Van Ru" take over my loan and work out a better rehab plan? Right now i'm dealing with Allied Interstate and they want outrageous rehab payments.

 

Van Ru would have to be assigned the account which isnt going to happen since Allied is already doing the garnishment.

 

How much do you owe?? Standard rehab payments should be set at 1% of your current balance.

 

Quit a job because they are garnishing 15%?? You are still taking home 85%. I could never understand the logic of quitting a job because of a garnishment.

 

I was just talking about quitting my part time job.

 

 

This is another thing I don't understand. I originally owed about 48,000 BEFORE default. Now they claim I owe them 58,000.

 

So no, I am NOT paying 580 bucks a month when they are only getting about 240 a month now.

 

 

But what worries me is this:

 

1. Are my payments going to the balance?

2. Am I being charged interest?

3. Won't the money I am paying be less than the interest I am charged and NEVER pay off the loans?

Edited December 5, 2007 by saginaw1975

[jcs0527]

The thing about rehab is it fixes the default on your credit report from the guaranteer.

It also after you pay all those fees are credited back (after you rehab). My husband rehabbed his loan and when he started the balance was roughly $2800. After 9 months of $45 the balance is $1660.

So it will make a difference.

 

That one poster that is giving advice like don't tell them about your job. We are talking about federally guaranteed loans. You can't lie to them or hide. They can take your tax refund, your retirement, your social security and they can garnish your wages without a court order.

 

Not a good idea to mess with student loans. Lynn is a smart lady. Listen to her.

[Cynic]

This is another thing I don't understand. I originally owed about 48,000 BEFORE default. Now they claim I owe them 58,000.

 

So no, I am NOT paying 580 bucks a month when they are only getting about 240 a month now.

 

 

But what worries me is this:

 

1. Are my payments going to the balance?

 

As always, payments go to collection costs and fees, then interest, then principle.

 

2. Am I being charged interest?

 

Of course. You agreed to pay interest when you took the loan. Defaulting doesn't get you out of that- it just means you'll pay collection costs too. After you defaulted they added 16% to 25%, causing your balance to increase.

3. Won't the money I am paying be less than the interest I am charged and NEVER pay off the loans?

It can. If your balance is 58k and you're only paying $240 a month, that very well may be the case.

[LynnInMN]

I just pulled up the student loan calculator and based on a $48,000 balance at 6.8%, you were accruing interest at a rate of $272 per month. Since your garnishent is going to collection costs and past due interest, you are not even touching the principal. With interest capitalization, your principal is dangerously increasinng.

 

My suggestion at this point in time is to keep the part time job and get into the rehab program. Yes it is going to hurt, but only for a year. Talk to the CA...based on "reasonable and affordable" payments clause and your income, you may be able to get a lower payment than the 1% standard payment to rehab while being garnished. Get it rehabbed and then consolidate. If your account is with the DOE, they will waive the collection fees when you rehab, a big bonus. (FFELP lenders do not waive these fees) The longer you wait, the more in collection fees you are going to pay. It will take you 9-10 months to complete the rehab, then approximately 60 days to consolidate. The longer you wait, the more it is going to cost you. So talk to the CA.