Hi, I just got off the phone with DCS about my student loan. They say that there's only 2 ways of me settling w/o getting my pay garnished:

EFT every month w/ $600 down
or
Paying half of it right now. The lady said that she wouldn't accept my offer of $80/mo. She says that my acct is under review and they'll proceed to garnish my wages if I don't agree to her terms. Anyone ever deal with these people before? BTW, I owe $3,000. Thanks for listening.

You call them back and tell that you want to rehabilitate the loan. $80 payment will work just fine! If they tell you that you need to make a downpayment, you just tell them that the Higher Education Act (HEA) does not require any downpayment. You just have to make 12 on time monthly payments and then your loan will come out of default! She cannot turn down reasonable and affordable payments. Also she cannot threaten to garnish you when you are offering a reasonable payment. Are they collecting for Direct Loans??? The reason I ask is if they are not cooperative, you can file a complaint with the DOE...the CA's are graded on complaints!!!

Lynn, thank you for the response! This really helps!

She did tell me that I could rehab my loan, but I'd have to give them my checking acct information. Is this true? She refused a mail-in payment to rehab it.

Thank you again!

She cannot refuse your rehab agreement just because you wont give her a checking account number. Tell her you dont have an account or it was just closed. She is just trying to build up her monthly post dated check bank, probably for some Spiff!