Student Loan Garnishments

[Golden Krust]

Has anyone ever had their paychecks garnished due to student loans?

 

That has not happened to me yet. *Knocks on wood*

 

However, that would be much cheaper than the astromomical amounts that they want me to pay each month.

 

Can you share your experiences with garnishments vs. willful payments?

[LynnInMN]

Is this for a federal loan or private loan??? Federal would be 15% of your disposable pay....private up to 25% depending on your state law after they sue you.

 

If federal, consolidate it quickly...get out of default and get on income contingent repayment.

[Golden Krust]

Private loans...

 

Where can I find the laws regarding this in my state? I'm in NY.

[LynnInMN]

Googled this Nolo Law

 

In New York State, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30% of minimum wage. If your disposable income is less than 30 times minimum wage, it cannot be garnished at all.

"Disposable earnings" are those wages left after your employer has made deductions required by law. Examples of legally required deductions are federal, state and local taxes, social security and the employee portion of state unemployment compensation insurance. Deductions that are not required by law do not count to reduce your disposable income.

[evapor8ted]

They would have to get a judgement first so at least you get a lot of advance notice...

 

Can you settle them off? Monthly payments on private loans in default is throwing your money into a black hole

[Golden Krust]

Do collectors on private loans allow to settle? Has anyone settled before? Wouldn't that require one large sum payment?

[LynnInMN]

Yes private loans will settle. And yes, a settlement by definition is one lump sum payment.

[Chloroplast]

Is this for a federal loan or private loan??? Federal would be 15% of your disposable pay....private up to 25% depending on your state law after they sue you.

 

If federal, consolidate it quickly...get out of default and get on income contingent repayment.

 

My income tax return was seized this year and I called the collection agency and loan guarantor to try and get the loan rehabbed to no avail. The collection agency wants all of the money and the loan guarantor told me they have nothing to do with the loan. Is there a way to get the loan out of default? Also, before the Dept. of the Treasury hands over a tax return, isn't there usually some sort of notification beforehand? Any information will be appreciated.

[LynnInMN]

Some guarantors will send out notifications in the fall before the offset however there is no legal obligation for them to do so. It is public law that this is a recourse of a default.

 

Who is the guarantor and CA?? How much do you owe?

[Chloroplast]

Some guarantors will send out notifications in the fall before the offset however there is no legal obligation for them to do so. It is public law that this is a recourse of a default.

 

Who is the guarantor and CA?? How much do you owe?

 

Illinois Student Assistance Commission is the guarantor and the CA is NCO Financial; I owe $18k.

[LynnInMN]

Call and ask to talk to a qualified manager. If they do not wish to cooperate contact the student loan ombudsman.

[Chloroplast]

Call and ask to talk to a qualified manager. If they do not wish to cooperate contact the student loan ombudsman.

 

I'll call this morning; thank you so much!

[evapor8ted]

If they are uncooperative you could consolidate out from under IASC but rehab has a lot better outcome as far as credit reporting goes.