I attempted to rehabilitate my student loan today as my wages are currently being garnished. The person I spoke to at General Revenue Corporation stated that I could do so, however, I would have to pay the Rehabilitation amount and my wages would continue to be garnished until the 9 payments in 10 months end. She also stated that my wages would still continue to be garnished after that.

When I continued to question her, she abruptly hung up on me. At this point, it's much cheaper to have them garnish my wages, than me paying the rehabilitation amount, and them to keep garnishing my wages indefinitely. What's the point of Rehabilitation then?

Was the woman from General Revenue Corporation correct? Can they still garnish my wages while in Rehabilitation?

HELP!

The CA was correct....those are the requirements. They are on the DOE site too.

Is there another alternative that I can do other than the garnished wages like consolidating? Would I be eligible for consolidation?

I thought once the rehab was complete, garnishment stopped? I believe I was just told that by a CA (not General Revenue) but am not sure.

Does the CA have a "right" to ask for a down payment? How do they determine the amount other than asking you what you have?

I think the OP was asking if they could continue to garnish even after rehab was completed. The answer to that is no. But, as Lynn said, they can (and will!) continue to garnish until after the rehab is completed and the loan is resold.

Sure, the CA has the right to ask for anything -- up to and including full payment immediately!! The rehab statute, however, doesn't say anything about a down payment. You may have to get the ombudsman involved in that one, though. Word of warning -- I don't remember who it was or who the guarantor was, but I do remember that there was a poster on here not too long ago saying how they were required to have a DP and the ombudsman said that was okay as a requirement. You may want to do a search on that; I don't remember the exact circumstances.

The default amount for rehab is 1% of the total owed (including interest, collection fees, penalties, etc.) with a minimum of $50. So, for example, if you owe $10,000 including all of that other, your rehab payment would be $100 per month. You must have $1,000 left over after the nine payments in order to qualify. You usually do have to give them your financial statements, especially if you want something other than the 1%. Most of us here have done it; it's not a big deal. Just make a list of your expenses. Be very honest, but don't skimp. You may also have to give copies of 1-2 pay stubs.

Hope this helps!! Good luck!!

I was told I would have to pay $925 on top of the $664/mo being garnished from my wages. That comes to a total of $1589/month, and me and my child would be out on the streets, and having been there once, there's no way I'm trying to be there again!

I'm not making excuses for owing the loan-- having been unemployed periodically due to domestic abuse... but now that I'm back on my feet again, I want to pay the loan, as it's the only negative thing on my credit report-- and I borrowed it, I need to pay it.

Is there anything at all I can do?? Please advise!

How much is your loan balance and how long have you been in default??