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Student loan collection questions.

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What is the name of your state? CA

The loan in question was originally received in TX (and I now live in CA), and is a couple of years in default. They are just about to start garnishing my wages, and at the suggestion of my employer I contacted them to try to work out payment arrangements instead of the garnishment. When I called, they simply said that all I could do was pay the full amount (many thousands of dollars). They had no interest in arranging a payment plan, even when I said I'd be willing to pay more than the garnishment. That was the end of the conversation.

Can they actually REFUSE my offer to work out a payment arrangement? They said they were perfectly content to just receive the wage garnishment (which will take well over 10 years to repay the loan).

Also, will this negative on my credit report go away after 7 years even if they are still collecting on it and such?

Thanks for the help, this is a great forum!


Senior Member
You have proven you are not reliable in paying you payments on time in the past, they will not trust you in the future. The garnishment is a guarantee of payment. The black mark will remain on your credit report till you pay it off, not from when you start paying on it. The creditor obtained a judgement to obtain the garnishment and judgmements are on you credit report for 10 years, not 7. You can pay more than the garnishment to reduce the amount owed sooner too. Or move back to Texas, garnishing of wages for consumer credit is not allowed there.


I thought it might be something like that... Actually, this is a ferderally insured loan (or something like that), they were able to garnish my wages while I was in TX as well...

Are there any legal things I can do regarding the eligibility of the school itself? They made lots of promises to get me to enroll, including the guarantee of getting a loan to pay for the whole thing (which they did). Nothing was in writing of course, except that the school as accredited when I enrolled. About half-way through the 2-year program, they lost that status (which means most colleges won't accept any of the credits from the school). I know some students had been successful in suing the school for this reason, but I didn't find out about it fast enough. I'm told you have 3 years to make a claim against a school for something like this? (Basically the education turned out to be useless, no employers cared, and many had never heard of them. Their 'job placement' consisted of handing you copies of the yellow pages and saying 'call all of these companies') There's other stuff, like them allowing ANYONE to graduate, even if they obviously hadn't learned the material. That certainly devalues a degree from that school...

Thanks again...

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