just found out i probably won't be able to consolidate. Here is why:

loans that have defaulted may be eligible for consolidation as long as certain criteria are met, which are:

* The holder of the defaulted loan must certify you have made satisfactory payment arrangements on the loan(s). Satisfactory payment arrangements, at a minimum, consist of three full, consecutive, voluntary, on-time payments prior to applying for a Consolidation loan.
* The defaulted loan cannot be subject to a judgment or an order of administrative wage garnishment.
* If there is a judgment or garnishment on the loan, the judgment must be vacated or the garnishment order must be lifted for those loans to qualify for consolidation.

In my case DOE has the loan and the CA would have to agree to payments (they won't under 10% of the total owed) or not garnish (they started this process today). I will try the ombudsman but I feel pretty hopeless now.

By the time you finishing dealing with the ombudsman, you will be in satisfactory repayment.

Plus you are nowhere near under a garnishment order yet.

Also....DOE always certifies its own loans, regardless of payment status.

Are these conditions true of all consolidation loans or just this organization (Student Loans of N. Dakota)?

Federal Direct's FAQ mentions judgements but not AWG:

"If a judgment has been issued against a defaulted loan, it cannot be included in the consolidation unless the judgment order has been vacated (dismissed)."

Dunno. I do not have a judgement. I guess I can hope for the best with my consolidation application. I contacted the ombudsman via online form today, and I am sending a letter to the public sector VP of allied interstate asking for his help as well.

And also to my congressional representative.

Jesus, talk about over kill! Have you read what we are telling you or this forum?? At this point in time you really, other than the Ombudsman, do not want to draw attention to yourself. You have been in default how many years, and now you are acting like the injured party! Follow what we have told you, and dont waste your postage, especially with Allied. They won't respond.

Well, trying to answer my own question, I came up with a thread with the following posts, which do make it sound as if garnishment is not always a bar to consolidation.

Anyone know whether Direct allows consolidation while the loans are being collected by AWG? It's not a purely academic question, since I am in fact being garnished and I did the online application with Direct yesterday. TIA.

I am not the injured party. I want to pay. I am profoundly regretful that the default lasted this long. I read and am grateful for your advice. I do believe that I should be allowed to try and voluntarily repay prior to a garnishment. All i want is for someone to allow me to at least try and do that. I have not avoided allied interstate and responded honestly to them immediatley. It is my opinion that someone above the lady who talked to me might listen. That is what I want.

I am bit rattled by the events of the last few days. I am sorry if this offends you or the group. Again, I read and take the advice seriously and I am very, very, grateful for it.

Still working back through all the threads - here's an exchange where Lynn seems to imply that bookworm's AWG isn't a bar to consolidation, as long as there is no judgement against her. I've looked at everything I can find on the Direct Loan website without finding an answer to my question, but it seems like at least some people here believe consolidation is possible even if a garnishment order is in effect on the loans.


[quote name='confused_bookworm' date='Feb 5 2006, 11:09 AM' post='1269151']
[quote name='LynnInMN' date='Feb 4 2006, 09:46 PM' post='1268556']
[quote name='confused_bookworm' post='1268484' date='Feb 4 2006, 07:55 PM']

I have several student loans, and they’re all currently in default status. For the last year years they have been garnishing my wages--10% of my gross income.

In order to rehab, you will need to make qualifying payments over and above your garnishment payment.

Yes I understand that

Originally when I first finished of school I had every intention of start paying my loans immediately. However, it was financially impossible for me to stick to the regular payment schedule due to a combination of factors. After I exhausted all possible deferment options, I was in delinquent status on and off. However, I manage to make many payments on each of the loans throughout the years. In addition I have had IRS reimbursements seized and I even had money in one bank account seized as well. I have no idea where exactly all that money went.

Do they have judgements against you??? Have they taken you to court and sued you?? This will make consolidation more difficult if so.

I believe the loan where this money was applied was paid off.
Will this still affect in consolidating the remaining loans?


[/quote]

Look at Lynn's sig.

I realize you want to pay but complaining to multiple parties when we told you exactly who to contact draws too much attention to yourself, which you dont want to do. Generally consolidations go thru without a hitch, but if you start pissing off too many people , they may hold you accountable to the rules. In my collection days i saw many accounts consolidated during garnishment. I got paid on "gift accounts"..accounts I had never contacted or barely worked and suddenly a consolidation payment would come in. AI has to sign your consolidation paperwork....you don't want them misplacing it or holding you to the letter of the law.

Lynn,


Just to be clear - you're saying consolidators will overlook a garnishment (unless you write to your congressman or whatever), but that technically it is against the rules for all consolidators - is that correct?

Also, what's an AI? Not artificial intelligence, I'm guessing. (Edit: Never mind - AI is ctonjes' lender, got it.)

Thanks,

Six

ai= allied interstate collection agency

the ombudsman was good advice. AI called and accepted the terms. So for now I am safe from any further movement towards garnishment.