Student Loan Confusion and Consolidation!

[ddaarryyll]

Hi

 

I really need some advice here. I am desparately trying to get out of default. I got a wage garnishment letter from Pheaa on my student loan. My student loan is actually with AES. Yes ia m in default. So anyway the letter was on Pheaa letter head and stated that Pheaa is processing a wage garnishment. I called Pheaa they said they are not. I called AES they sent me to GC services. In the meantime I went ahead and filed a consolidation application I really want to fix this. So i proceed to call GC. I let them know I can afford to pay them 100 today and 200 on the 20th. They would not accept that because I do not have a checking account. BTW this is after asking me for 1000.00 up front. So 300.00 total this month. They said the least AES will accept is 180.00 wait I thought according to NAt student loan and AES that GC services is the one trying to collect. Anyway they will not take less than 180.00 to stop the wage garn. Also the wage garn equals 226 .00 out of my paycheck. In the meantime I have this application in for consolidation. So I have to stop the wage garn before it happens. Letter also states that the date is 01/14*/14 and I have to the 12th. I though they have to give me a 30 day notice? So basically my question is two parts:

 

1. If I pay GC services 180.00 can they still garnish and can I still consolidate? They said I can I think they are lying.

 

2. Is the letter legal if they say that Pheaa will garnish when they are the ones trying to garnish (btw no wage garnishment hearing to date)? Pheaa said they are not.

[shifter]

the date is 01/14*/14 and I have to the 12th. I though they have to give me a 30 day notice?

I don't know anything about your issue other than to say that 1/14 to 2/12 is 30 days.

[FreeaAndClear]

Student Loans are a whole different beast. I would suggest posting in the Student Loan forum.

 

I don't know the answer to your questions but it seems like the answer to SL questions is generally, "yes, they can."

 

If they do start garnishing, you will need to make a payment on top of your garnishment in order to get out of default.

 

Ask the knowledgable people in the SL forum but be prepared to hear what you don't want to hear.

[mendelssohn]

I was being garnished when I consolidated my loans. I made no additional payments before consolidating. If you can afford to rehab the loans, it's worth it. Consolidation removes that option.

[tmcgill]

All they have to do is send a notice to your employer for the garnishment. I've been down that road, and debt collectors will try to take advantage of the situation.

 

Depending on the age of your loan, the Dept. of Education's Ombudsman may be able to help with refinancing. I now pay Mohela each month based on my income. Contact the DOE pronto! Tell them you'd like to repay based on your income, and debt collectors are demanding a lot of upfront fees.

 

Also, send a Demand for Validation (DV ltr via certified mail) to the debt collectors(s). Although they are collecting student loans, they still have to validate the debt and must follow the Fair Debt Collection Practices Act (FDCPA). They must stop collection activities until they validate.

 

I found this out when I worked with the DOE Ombudsman. GC was constantly calling and sending faxes to my supervisor to "verify my employment". Luckily my supervisor was understanding and fired a letter back to them threatening to file a complaint with the TX attorney general for sending the multple faxes. I sent the DV letter which stopped the harrassment, and I was able to get the re-fi with the DOE.

 

Note: Although there are some exceptions, federally backed student loans have no SOL and will follow you to infinity and beyond. You must set up a repayment plan.

 

Recap:

1. Send a DV letter to any collection agencies via certified mail return receipt.

2. Call the DOE and try to get a repayment plan you can handle.

 

 

 

https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman

Edited February 5, 2014 by tmcgill

[evapor8ted]

Set up a rehab now, starting in July you will have to make 5 rehab payments before they release. ED regs.

 

The consolidation will not go through while you are in AWG. Will be coded DI, for active judgement

 

GC services would/will be processing the garnishment on behalf of PHEAA. PHEAA and AES is the same company.

 

What is the loan balance? I can tell you is $180 is about right or not for rehab

 

A DV is a complete waste of your time. If you cannot pay request a hearing to buy yourself some time to come up with payments Phone hearings take the most time to schedule.

[mendelssohn]

The consolidation will not go through while you are in AWG. Will be coded DI, for active judgement

 

Has this changed from several years ago? I consolidated my loans with Direct Loans while in wage garnishment.

Edited February 7, 2014 by mendelssohn

[evapor8ted]

 

The consolidation will not go through while you are in AWG. Will be coded DI, for active judgement

 

Has this changed from several years ago? I consolidated my loans with Direct Loans while in wage garnishment.

 

 

Whoever holds the loan, ED or a guarantor has the authority to process the consolidation if they want by leaving off the garnishment status. If they report that there is a garnishment it will be denied.