Student loan wage garnishment

[dncr]

What is the name of your state? CA

My husband has some old student loans that he had defaulted on during a bad time in his life. The agency has been garnishing his checks for several years now (like 5), and the debt is getting pretty reasonable. What are the chances of getting them to lower the garnishment, or remove it and put him on a payment plan? Has anyone ever succeeded in this?

 

[Ladynred]

Appeal the garnishment and go thru the process to negotiate. They might agree to it if your offer is reasonable and will pay off the debt in the same or less time.

 

[David Jonathan]

an easier way to do it, is to call the agency handling the garnishment, and get those debts out of default. Just because they're taking money, and the loan balances are going down, does NOT mean they are out of default.

It's real easy to get them out of default too - down payment, and 10 monthly payments, on time, automatically drawn from your account, and they are out of default, and sold to another bank, and all negative marks are removed from your credit.

After the loans are out of default, and sold to another bank, if you want to, you can consolidate your loans to one loan, and then apply for one of the payment options, where they calculate your payment based on your earnings.

--Dave.

 

[TigerD]

Dave, It sounds like you have gone through something similar...

 

[David Jonathan]

I'm on my second of 10 monthly payments, and FINALLY gettin' my credit act together. Feels good.

--Dave.

 

[dncr]

Good stuff, thank you!!!