moneyflow
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Joined: 22 Jul 2005
Location: New York |
Student Loan Collections |
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My girlfriend told me today that she got a call at work from a collection agency regarding her defaulted federal student loan. They demanded that she come up with a "down payment" on the money she owes in two days or they will recommend wage garnishment. It seems like they were not very open to negotiating a smaller montly payment and needed this so called down payment or else face garnishment.
My question is if she does not pay the down payment and just tries to send as much as she can afford every month, will this be enough to stop the wage garnishment steps.
Is it legal for them to ask for a down payment? I know that they buy the loan for pennies on the dollar and this is probably their principal before they start making a profit on the debt.
Also can you appeal wage garnishment and is it easy to do for them?
What are the options of a student loan in collections if you can't meet their minimum monthly payment and want to avoid wage garnishment?
What is the procedure of stopping wage garnishment if it begins?
Thanks
http://www.MoneyFlowForLife.com | http://www.DanielCassidy.ws
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Thu Jun 26, 2008 3:41 am |
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shaneroof
Contributing Member
Cash: $ 9.20
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Joined: 16 Jul 2008
Location: washington dc |
Yes! I agree with your great advice, it really works for me.
Thanks for your information!
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Wed Jul 30, 2008 4:58 pm |
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oldguy
Senior Member
Cash: $ 751.85
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Location: arizona |
It's different for student loans. The govt got stiffed by so many students back in the 1960s that they made special rules.
A student loan can never be dismissed in a bankrupcy like other loans can.
And the govt will always collect a student loan. They will take your IRS refunds, and they ultimately take your Sociial Security Pension.
But I don't know if they need a judgment to garnish or if they already have the right - but in either case they will garnish.
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Wed Jul 30, 2008 11:26 pm |
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shaneroof
Contributing Member
Cash: $ 9.20
Posts: 46
Joined: 16 Jul 2008
Location: washington dc |
Once a debt goes to collections then tons of fees can be added on. I know of one business that the total due DOUBLES one it goes to collections and it is all legal. You can negotiate the debt if you want. If it is a federal loan though, you will get things like tax refunds and stimulus checks taken from you to help pay off the debt.
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Wed Sep 03, 2008 11:51 am |
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