Private Student Loan Garnishment

[kmlman]

I live in Washington State. My understanding is that with guaranteed student loans--not private student loans--15% of wages can be garnished administratively, i.e. without a judgment. Does the same hold true for private student loans, or does there have to be a judgment?

Also, does it matter if the private student loan is in fact held by Sallie Mae?

Thank You.

[Mr. Knowitall]

If the private loans are not federally guaranteed, then the rules applying to federally guaranteed loans do not apply to them.

If the private loans are federally guaranteed, then they are federally guaranteed student loans.

[kmlman]

Thanks for your response. Well, you know, that is a difficult question to answer re "federally guaranteed." The loan is held by Sallie Mae, but it is definitively a "private student loan." It's not your traditional student loan that, e.g., can be consolidated with other student loans. But your point is, correct me if I am wrong, that if it is not fguaranteed by the federal government, they would have to get a judgment, instead of being able to administratively garnish it? Do you have a cite to the relevant statute that discusses this re: private student loans?

Thanks for your help.

[Mr. Knowitall]

I don't think you understand the nature of a guarantee. If the federal government has to pay off your lender because you default, it's not your lender who will be seeking reimbursement - it's the federal government.

[kmlman]

Yes, but Sallie Mae both guarantees student loans as an arm of the government, and also writes these loans privately. Or so I have been led to believe. I certainly understand your point, however; I'm not sure whether the government guarantees it or not, and will try and figure it out. Do you happen to have the citation to the relevant federal statute that deals with what requirements the Govt. has to take to enforce defaulted student loans it has guaranteed?

Thanks