WTH does this actually mean?

[DragonFlyer]

I applied for a consolidation for DH's student loans because they were in default. I just checked his EX report and it says "SL permanently assigned to government"...this is new info added.

 

Is this as bad as I think it is?

[BubbaG]

You might want to post this over in the student loan forum.

[centex]

No tax refund for you...

 

It sounds like an entry denoting that the lender has gotten their money and the matter is now a government claim. Do not be surprised if AWG is initiated in the near future either, at least until you consolidate.

[DragonFlyer]

What's AWG?

 

Sorry to post in wrong forum. Can a mod move it or should I repost?

 

This is what is reporting...who do I contact now?

 

* US DEPT OF EDUCATION

* Reporting: Claim filed with government/Collection account. Claim filed with the government as of Oct 2008. Terms: 146 months. Credit Limit: $23,389 New Balance: $0 Creditor's statement: Student loan permanently assigned to government.

 

 

* U S DEPT OF ED/FISL/CHI

* Reporting: Collection account. $13,482 past due as of Nov 2008. It shows 36 month terms. Creditor's statement: Collection as of Nov 2008

 

 

* U S DEPT OF ED/FISL/CHI

* Reporting: Collection account. $12,507 past due as of Nov 2008. It shows 36 month terms. Creditor's statement: Collection as of Nov 2008

[PinkGirl]

mine reported that way. but i paid them off in time. they will go after your tax refund, have u gotten that notice yet? and if they say that then expect a CA to get involved also.

[DragonFlyer]

Pink,

 

Who did you pay? We haven't received any notices and the number to call and see if there are any offsets indicate there are none currently on file. Should I file our taxes ASAP (tomorrow is the first day to efile I believe) and hope for the best?

 

I need to add that DH is filing for a SL discharge via DOE because he's 100% disabled and unable to work or attend school. While I process those forms through his doctors, I am trying to see how I can keep our credit from tanking even more. We were hoping to get a tax refund to help us move to a lower cost of living area to make ends meet.

Edited January 15, 2009 by DragonFlyer

[PinkGirl]

i called the original servicer and they told me who to call.........they wouldnt let me pay them. and to add insult to injury now that it's in default they add fees. uck. sorry to bear bad news.

 

and i am not sure if the discharge would go retro and clear up the baddies. i have no experience with that.

 

isnt there a website that u can check ur taxes? to see if there are offsets?

[DragonFlyer]

If you call (800) 304-3107, the automated system will tell you whether or not you're on the offset list.

[PinkGirl]

i called i have nuttin. that's a relief!

[centex]

What's AWG?

 

AWG is Administrative Wage Garnishment. They don't need to sue in court to garnish on a federally-backed SL...

[DragonFlyer]

Although the Treasury Dept has no offsets on file, I found this info and application to avoid an offset that would create a hardship: From this page: http://www.ed.gov/offices/OSFAP/DCS/disput...ml#Hardship-IRS

 

Hardship Caused by Offset of Social Security Benefits, Federal and/or State Income Tax Refunds, or Other Payments

 

Before the Department referred your defaulted student loan(s) or grant claim(s) to the Department of the Treasury for offset, the Department offered you - either directly or through the guaranty agency that holds your loan - an opportunity to avoid offset by either agreeing to repay the debt or proving that you do not owe the debt. As explained in that notice, unless you took one of these actions by the 65-day deadline, the Department would request that any federal and/or state tax refunds and other payments owed to you, be withheld and applied to satisfy the debt.

 

If you claim that this withholding action is causing you and your dependents financial hardship, the Department may consider modifying or suspending withholding action. To present your claim, you must contact the Department or the guaranty agency that holds your debt, and must submit documentation satisfactory to the holder of the debt to support your claim. The Department or the guaranty agency, as its designated representative, will consider your claim and may agree to modify the withholding action. You may be required to complete a statement of financial status, which you can download now.

 

http://www.ed.gov/offices/OSFAP/DCS/forms/fs.pdf

 

 

 

They base the "typical expenses" for your family here: http://www.irs.gov/individuals/article/0,,id=96543,00.html