Student loan-wage garnishment

[jbowman]

What is the name of your state? NV

I dont have much background but would like to see if I can get a general answer.

My mother, age 54, apparently has 2 student loans that are insane because of the interest accrued. She has stated to me that she was making very small payments on them for years and years when suddenly they called her and said they would not accept these small amounts any longer.

She has stated that they started garnishing her wages. I am thinking these are collection agencies that are doing that.

The whole thing rings untrue to me though. Can a collection agency just garnish your wages without taking you to court? Truth be told, I think my mother is gambling in Vegas and lying about why she has no money.

Anyone have any insight? I didnt think that a collection agency could garnish wages without a court order.

[racer72]

Originally Posted by jbowman

Can a collection agency just garnish your wages without taking you to court?

Many federally backed student loans do not require a judgment to garnish wages. It happened to my brother.

[GulfBreeze]

I think student loans are the next to hardest loan to beat. The first being TAXES. The student laws are federally backed loans and you don't ever want to owe them money because they will get it. They still have to observe garnishment laws (I owed around $3000 on fed taxes and they couldnt garnish me at all, but took it out of my tax refunds until paid). They can seize anything they are allowed and will threaten to and in most cases, do seize property. They have in recent years tried to be kinder, but they still want their money and will get it. I would work out a payment arrangement if possible. They will work with you. Just don't think you can fight them....you will always lose against the govt.

[debtcollector`]

Actually, they have also authorized student loan collections to garnish your social security checks too now.

DC

[hurtnlickingco]

Hello,
I work with student loans for a living and your mother must have a federal student loan as only the government can "garnish wages" without taking you to court. Your mother has many options that will help her. First, all Federal Student Loans come with time off, usually 3 yrs hardship/unemployment deferment and 5 yrs anytime off called forbearance. Because your mom is obviously in default she has lost her time off rights.

Federal Student Loans also are forgiven should the loan holder become disabled or die. If your mom is disabled, she needs to request a perm. disability CANCELATION form. All borrowers who are perm disabled who complete this form are watched for 3 yrs and if your mom does not have a w2 for the next 3 yrs her loans are paid in full by the government! For more information see :
[url]http://law.justanswer.com/questions/q0ol-disability-board-ed-states[/url] .

Federal Student Loans also offer a temporary disability deferment form, but due to default she would not qualify.

If your mom is lucky enough to be healthy, there is still good news! President Clinton made it possible for all students to get a second chance at their student loans. Even if defaulted and never paid a dime, all students can have their student loans rewritten. The government is willing to do this because so many students are almost a teacher, doctor, attorney and they took too much time off school and defaulted. Once defaulted, sudents cannot get back in school unless they pay upfront . The second chance enables students to get back in school, get employment and eventually aford to repay....it also helps your mom and she does not need to return to school to qualify! The interest rate is the weighted average of all existing interest rates and the process takes 2-4 weeks. Go to [url]www.loanconsolidation.ed.gov[/url] and complete the online application or call 800-557-7392 8am-8pm EST. Your mom has pick the income contigent repayment option due to default status, payments will be based upon her little income not the amout of the loan. Do not list the collection agency as the creditor, list who the money is owed to...if you are not sure call the phone number I just gave you and they will tell you what to list. Your mom will need to be with you when you call. Once her loans are rewritten she will get her deferment and forbearance years to use up all over again! There are no additional fees added to the account when you have your loans rewritten or consolidated. Your mom's collection agency will not be happy so I would avoid them ...they will get a nice email saying "thank you for all of your hard work on mom's account but we are giving her a second chance and will not be paying you." I am sure you and mom will not loose any sleep. Goodluck!