Question:
Dear Steve,
I, apparently like many, could not make the minimum payments required by the department of education, well apprently I can since they’re hitting me with two garnishments at the same time for a whopping 25% of my gross (combined not a piece).
I was going to dispute the second one, but I misread the paper and thought that since my first garnishment went to the department of education the second was just more debt added. Now I owe 8,000 on my first and 31,000 on my second. I gross around 1,000 a week.
I tried to settle with one of their collectors for 300/month but they scoffed at me and said that wouldn’t work.
Do I have any options at this point? Or am I doomed to struggle to feed my family of four for the next 50 months or so? Any advice, even “suck it up” would be appreciated.
Thanks,
Zach
Answer:
Dear Zach,
You don’t get a “sick it up” because what you really need is a slap upside your head. What were you thinking letting these federal student loans go into default? Rhetorical question.
With the availability of crappy income driven repayment programs there is no need to allow any federal student loan to go into default and jack up your balance with collection fees and penalties.
I could give you a big long answer but instead you need to read The Easiest Way to Stop a Student Loan Wage Garnishment C Loan Rehabilitation.
If you act extra fast you may be able to avoid the crap ton of collection fees that will be added to that second loan balance.
Stop letting this stuff rain down on you or I will be forced to hunt you down and kick your ass in an appropriate and loving way.
Get your loans out of default with rehab, consolidate all your federal student loans into one new direct loan, opt for an income driven repayment plan and certify that new reduced payment annually. If you do all of this you won’t need to write me again for 25 years.
