I have a defaulted student loan - live in Indiana - CA is in New Jersey.
I had previously been denied forbearance or hardship (not sure why since my income was way below poverty level) from a previous CA.
Apparently this new CA has made multiple calls - unknown to me to employer and coworkers - giving private information (which is illegal?).
I think a wage garnishment has been placed at my workplace - however HR will not tell me about this.
My hours were reduced at my workplace to keep from workplace from having to pay garnishment - though they will not admit to this.
I have not been served any papers.
Once I learned of phone calls to workplace from a coworker - I sent a limited C and D - had to do some detective work to find the address and name of CA.
My income is so low I probably do qualify for food stamps at this point.
With the previous CA - I tried to necogiate a low payment of 5 dollars a month - which would have still been a hardship for me.
I have no property or money to attach at this point in time.
Given the state of the economy and my advanced age - I am having difficulty finding another job.
I would like to get a hardship deferrment or something to remove the garnishment.
Obviously the garnishment is on my credit report making finding a job even more difficult.
There are no credit counseling agencies or low cost attorneys in my area.
I am also sinking into a deep mental depression over this and it is affecting me physically.
I am again going to try and necogiate a hardship deferrment or very low payment option with the government.
Any links to rehabiliation of student loan sites that can help?
Positive advice needed at this point.
Thank you.
Full Version: Defaulted Student Loans
Hi there,
Sorry to hear about your difficulties. I hope you are able to get this resolved soon. I can understand the stress you are under. Do you have only one SL at this time? If not, I recommend doing a consolidation.
If the SL's are federal you can possibly try this site to get a consolidation (even on defaulted loans) and go on an income-contingent program. I am currently trying to do this for my DH:
www.loanconsolidation.ed.gov
Try that and see where you get with it. It should pull it out of collections at the very least. Perhaps others can add to this or offer better suggestions.
Sorry to hear about your difficulties. I hope you are able to get this resolved soon. I can understand the stress you are under. Do you have only one SL at this time? If not, I recommend doing a consolidation.
If the SL's are federal you can possibly try this site to get a consolidation (even on defaulted loans) and go on an income-contingent program. I am currently trying to do this for my DH:
www.loanconsolidation.ed.gov
Try that and see where you get with it. It should pull it out of collections at the very least. Perhaps others can add to this or offer better suggestions.
QUOTE (Person155 @ Dec 21 2008, 02:53 PM) 
I have a defaulted student loan - live in Indiana - CA is in New Jersey.
Has no bearing on student loans.
I had previously been denied forbearance or hardship (not sure why since my income was way below poverty level) from a previous CA.
Once you default you are no longer qualify for any deferments or forebearances.
Apparently this new CA has made multiple calls - unknown to me to employer and coworkers - giving private information (which is illegal?).
What information have they given out?
I think a wage garnishment has been placed at my workplace - however HR will not tell me about this.
My hours were reduced at my workplace to keep from workplace from having to pay garnishment - though they will not admit to this.
This is probably illegal.....
I have not been served any papers.
No court order is required for admin wage garnishment....it is authorized by congress.
Once I learned of phone calls to workplace from a coworker - I sent a limited C and D - had to do some detective work to find the address and name of CA.
Does the CA has your current address and phone number?? You should be receiving correspondance including a garnishment notice. It is your responsiblity to keep your lender or guarantored aware of your current address.
My income is so low I probably do qualify for food stamps at this point.
With the previous CA - I tried to necogiate a low payment of 5 dollars a month - which would have still been a hardship for me.
I have no property or money to attach at this point in time.
Given the state of the economy and my advanced age - I am having difficulty finding another job.
I would like to get a hardship deferrment or something to remove the garnishment.
Since you defaulted, you are not eligible.
Obviously the garnishment is on my credit report making finding a job even more difficult.
No it is not....the CA doesnt even appear.
There are no credit counseling agencies or low cost attorneys in my area.
Student loans cannot be handled thru credit counselling.
I am also sinking into a deep mental depression over this and it is affecting me physically.
I am again going to try and necogiate a hardship deferrment or very low payment option with the government.
The only other option you have to apply for a Direct Loan consolidation....you would then be assigned to the income contingent repayment. While in collections you have no option of working with anyone but the CA.
Any links to rehabiliation of student loan sites that can help?
Positive advice needed at this point.
Thank you.
Has no bearing on student loans.
I had previously been denied forbearance or hardship (not sure why since my income was way below poverty level) from a previous CA.
Once you default you are no longer qualify for any deferments or forebearances.
Apparently this new CA has made multiple calls - unknown to me to employer and coworkers - giving private information (which is illegal?).
What information have they given out?
I think a wage garnishment has been placed at my workplace - however HR will not tell me about this.
My hours were reduced at my workplace to keep from workplace from having to pay garnishment - though they will not admit to this.
This is probably illegal.....
I have not been served any papers.
No court order is required for admin wage garnishment....it is authorized by congress.
Once I learned of phone calls to workplace from a coworker - I sent a limited C and D - had to do some detective work to find the address and name of CA.
Does the CA has your current address and phone number?? You should be receiving correspondance including a garnishment notice. It is your responsiblity to keep your lender or guarantored aware of your current address.
My income is so low I probably do qualify for food stamps at this point.
With the previous CA - I tried to necogiate a low payment of 5 dollars a month - which would have still been a hardship for me.
I have no property or money to attach at this point in time.
Given the state of the economy and my advanced age - I am having difficulty finding another job.
I would like to get a hardship deferrment or something to remove the garnishment.
Since you defaulted, you are not eligible.
Obviously the garnishment is on my credit report making finding a job even more difficult.
No it is not....the CA doesnt even appear.
There are no credit counseling agencies or low cost attorneys in my area.
Student loans cannot be handled thru credit counselling.
I am also sinking into a deep mental depression over this and it is affecting me physically.
I am again going to try and necogiate a hardship deferrment or very low payment option with the government.
The only other option you have to apply for a Direct Loan consolidation....you would then be assigned to the income contingent repayment. While in collections you have no option of working with anyone but the CA.
Any links to rehabiliation of student loan sites that can help?
Positive advice needed at this point.
Thank you.
I applied for hardship/forebearance before entering default.
They refused to work with me despite knowing my low income and my expenses.
They do have my address and phone number.
They are violating a limited C and D - sent by certified mail.
The point is they have given out illegal information to my employer and coworkers - causing me to lose work hours.
I believe CAs have to follow the same FTC rules for student loans collections - just as they do for other types of collections.
Harassing my employer to the point my work hours are reduced - further reducing my income will not help them get any money - because I have even less now.
Aren't garnishments and collection efforts or defaults listed on credit reports?
Many employers look at credit reports before job offers.
Obviously if my income is so low I qualify for food stamps - then I do not have money to pay them.
Wouldn't it have been better for the government to accept a low low payment - then harass me?
They can't get blood from a turnip.
I have nothing to take - no house or property or bank accounts holding cash.
It is like they think we can just magically come up with all the money from the student loans, interest and all the extra fees they tack on.
If you haven't got it - you haven't got it.
I am considering applying for bankruptcy to stop their hounding me - I know it won't get rid of the student loan debt - but what else can I do?
Given these bleak economic times - I am sure many others are going through the same issues.
Positive responses please.
They refused to work with me despite knowing my low income and my expenses.
They do have my address and phone number.
They are violating a limited C and D - sent by certified mail.
The point is they have given out illegal information to my employer and coworkers - causing me to lose work hours.
I believe CAs have to follow the same FTC rules for student loans collections - just as they do for other types of collections.
Harassing my employer to the point my work hours are reduced - further reducing my income will not help them get any money - because I have even less now.
Aren't garnishments and collection efforts or defaults listed on credit reports?
Many employers look at credit reports before job offers.
Obviously if my income is so low I qualify for food stamps - then I do not have money to pay them.
Wouldn't it have been better for the government to accept a low low payment - then harass me?
They can't get blood from a turnip.
I have nothing to take - no house or property or bank accounts holding cash.
It is like they think we can just magically come up with all the money from the student loans, interest and all the extra fees they tack on.
If you haven't got it - you haven't got it.
I am considering applying for bankruptcy to stop their hounding me - I know it won't get rid of the student loan debt - but what else can I do?
Given these bleak economic times - I am sure many others are going through the same issues.
Positive responses please.
I just finished applying for a Direct Loan Consolidation. It wasn't hard and it *should* pull the accounts out of default (and in your case, away from the CA's hounding you...) and give us the option of getting a deferment.
https://loanconsolidation.ed.gov/appentry/appindex.html
Good luck!
https://loanconsolidation.ed.gov/appentry/appindex.html
Good luck!
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.