Hi guys.
I posted here long time ago, my SL's are now in good standing, Husband is rehabbing his, i have a question for my friend - she had loans in CA for a while, they caught up with her and set up rehab, she was at it for a few months, lost her job, the account they drew on got overdrawn, eventually closed and is also in CA. She's now again settled and employed, called up the SL CA to offer payments, and they told her garnishment was inevitable.
I guess, I am wondering - is that really the case? If they don't want a payment, woudl making it to the Nat'l payment center (she still gets invoices from them (Dept Edu?) help? Any good advice I can pass on?
Thanks!
ETA: After reading a bit more, I have some more questions: If consolidation is not contingent on credit, what is it contingent on? Can you get denied?
From what I am reading, 15% is the standard garnished amount, and also the standard amount with the income based consolidation, right? Is it 15% of income, or of disposable income?
WHat happens to the TL's when you consolidate? Off to read some more.
Full Version: garnishment
QUOTE(SnorkMaiden @ Nov 13 2006, 03:37 PM) 
Hi guys.
I posted here long time ago, my SL's are now in good standing, Husband is rehabbing his, i have a question for my friend - she had loans in CA for a while, they caught up with her and set up rehab, she was at it for a few months, lost her job, the account they drew on got overdrawn, eventually closed and is also in CA. She's now again settled and employed, called up the SL CA to offer payments, and they told her garnishment was inevitable.
She lost her 1 chance at rehab. Sounds like she did not offer them acceptable payments. Yes they can garnish...they already worked with her once by offering her a chance to make voluntary payments that she agreed to make and could afford at the time she agreed to the rehab...she failed to keep her end of the bargain.
I guess, I am wondering - is that really the case? If they don't want a payment, woudl making it to the Nat'l payment center (she still gets invoices from them (Dept Edu?) help? Any good advice I can pass on?
She can certainly make a payment. Doing so will not prevent garnishment unless she pays a satisfactory amount. She can appeal the garnishment on the grounds that it creates an undue hardship. The burden of proof lies in her, and she is responsible for all costs associated with attending a hearing.
Thanks!
ETA: After reading a bit more, I have some more questions: If consolidation is not contingent on credit, what is it contingent on? Can you get denied?
Consolidation of federal student loans is an entitlement, like the federal student loans themselves. FFELP lendors can refuse to consolidate defaulted loans. DE and some guarantors do consolidate defaulted loans.
From what I am reading, 15% is the standard garnished amount, and also the standard amount with the income based consolidation, right?
Is it 15% of income, or of disposable income?
15% of disposable income is the max garnishment amount. I believe the max monthly payment for DE loan granted income-congruent repayment is 15% of gross monthly income, but not positive.
WHat happens to the TL's when you consolidate? Off to read some more.
They would be updated to indicate paid in full, and the consolidation would create a new tradeline. The fact that they defaulted, and the prior delinquencies, would remain. Had your friend rehabed the default would be removed, however that did not happen.
I posted here long time ago, my SL's are now in good standing, Husband is rehabbing his, i have a question for my friend - she had loans in CA for a while, they caught up with her and set up rehab, she was at it for a few months, lost her job, the account they drew on got overdrawn, eventually closed and is also in CA. She's now again settled and employed, called up the SL CA to offer payments, and they told her garnishment was inevitable.
She lost her 1 chance at rehab. Sounds like she did not offer them acceptable payments. Yes they can garnish...they already worked with her once by offering her a chance to make voluntary payments that she agreed to make and could afford at the time she agreed to the rehab...she failed to keep her end of the bargain.
I guess, I am wondering - is that really the case? If they don't want a payment, woudl making it to the Nat'l payment center (she still gets invoices from them (Dept Edu?) help? Any good advice I can pass on?
She can certainly make a payment. Doing so will not prevent garnishment unless she pays a satisfactory amount. She can appeal the garnishment on the grounds that it creates an undue hardship. The burden of proof lies in her, and she is responsible for all costs associated with attending a hearing.
Thanks!
ETA: After reading a bit more, I have some more questions: If consolidation is not contingent on credit, what is it contingent on? Can you get denied?
Consolidation of federal student loans is an entitlement, like the federal student loans themselves. FFELP lendors can refuse to consolidate defaulted loans. DE and some guarantors do consolidate defaulted loans.
From what I am reading, 15% is the standard garnished amount, and also the standard amount with the income based consolidation, right?
Is it 15% of income, or of disposable income?
15% of disposable income is the max garnishment amount. I believe the max monthly payment for DE loan granted income-congruent repayment is 15% of gross monthly income, but not positive.
WHat happens to the TL's when you consolidate? Off to read some more.
They would be updated to indicate paid in full, and the consolidation would create a new tradeline. The fact that they defaulted, and the prior delinquencies, would remain. Had your friend rehabed the default would be removed, however that did not happen.
QUOTE(Cynic @ Nov 28 2006, 07:06 AM)
I guess, I am wondering - is that really the case? If they don't want a payment, woudl making it to the Nat'l payment center (she still gets invoices from them (Dept Edu?) help? Any good advice I can pass on?
She can certainly make a payment. Doing so will not prevent garnishment unless she pays a satisfactory amount. She can appeal the garnishment on the grounds that it creates an undue hardship. The burden of proof lies in her, and she is responsible for all costs associated with attending a hearing.
Actually, she doesn't have to attend a hearing - she can do an appeal over the phone, or she can do strictly a paper appeal where she just sends copies of all of her bills and a statement including any other pertinent facts. I just successfully appealed my garnishment order that way.
From what I am reading, 15% is the standard garnished amount, and also the standard amount with the income based consolidation, right?
Is it 15% of income, or of disposable income?
15% of disposable income is the max garnishment amount. I believe the max monthly payment for DE loan granted income-congruent repayment is 15% of gross monthly income, but not positive.
The garnishment amount is 15% of your income after taxes and deductions for health insurance only. They don't consider deductions for union dues, uniforms, or anything else.
She can certainly make a payment. Doing so will not prevent garnishment unless she pays a satisfactory amount. She can appeal the garnishment on the grounds that it creates an undue hardship. The burden of proof lies in her, and she is responsible for all costs associated with attending a hearing.
Actually, she doesn't have to attend a hearing - she can do an appeal over the phone, or she can do strictly a paper appeal where she just sends copies of all of her bills and a statement including any other pertinent facts. I just successfully appealed my garnishment order that way.
From what I am reading, 15% is the standard garnished amount, and also the standard amount with the income based consolidation, right?
Is it 15% of income, or of disposable income?
15% of disposable income is the max garnishment amount. I believe the max monthly payment for DE loan granted income-congruent repayment is 15% of gross monthly income, but not positive.
The garnishment amount is 15% of your income after taxes and deductions for health insurance only. They don't consider deductions for union dues, uniforms, or anything else.
QUOTE
She lost her 1 chance at rehab. Sounds like she did not offer them acceptable payments. Yes they can garnish...they already worked with her once by offering her a chance to make voluntary payments that she agreed to make and could afford at the time she agreed to the rehab...she failed to keep her end of the bargain.
This is incorrect. You can only be rehabbed once, but you can make numerous attempts to comlete the rehab program. She is still entitled to rehab the account.
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