Is there any way around student loan wage garnishment?
They recently started garnishing my husband's wages. He applied for the rehab program but still has to do this for 5 months. Except, nothing will matter anymore by then. We just had our 1 and only car repossessed, our rent is so back up that we'll be kicked out by then, we don't qualify for any kind of help..and now we have to cab it everywhere which actually costs more a month than the car payment did. We'll be homeless before this ends.
I have a hard time believing there isn't a program or something that can help us out of this in some way. like lowering the percentage they're garnishing... anything.
- diLv 43 months ago
There are different rules for different types of student loans. Federal student loans have income-based repayment options - the Rehab program allows a student to tell the government what IS affordable and would not cause wage garnishment. You can go to NSLDS.gov to see if ALL his Federal loans were included in his loan rehabilitation agreement. If a loan was NOT included, he should call his rehabilitation contact and request that it be included - that might remove the wage garnishment. PRIVATE student loans (through banks) are NOT reflected on NSLDS, and do not share the same repayment terms. If your husband has some of these loans, that what may be causing the wage garnishment? Private student loans CAN be dissolved through bankruptcy, Federal student loans cannot. Good luck!
- MarkLv 73 months ago
Assuming you went through some sort of federal program, useless you didn't contact them and say "this is too much. We can't pay it all" and just stopped paying, well, it IS within their rights (because of the contract that you signed) for them to garnish your wages. (They expect at least a token payment - even if it's only $25 or $50/mo - and not to be blown off as if it was "not important". If you DID tell them "we can't pay all this right now", then you should seek a lawyer.
- Godless GazooLv 73 months ago
Student loans are government guaranteed and they have more tools than most debt to collect. Talk to a bankruptcy lawyer.
- megalomaniacLv 73 months ago
That's the thing about a loan, you're expected to pay it back. I do have sympathy for your hardships but you should have seen this coming and planned accordingly. At this point spending your remaining money on taxis seems really foolish to me. Walk more. And if you can't walk to work then either get a job closer to home or move closer to work. There are always more choices available than one thinks. Change isn't necessarily for the worse. You need to change something...