Wage Garnishment Over an Old Student Loan
Hi,
in around 1985 I made the mistake of taking out a student loan while living in texas ( I am currently in Nebraska).
the loan was only for $2500. I did not graduate, left the state, and went on with my life which included divorce, remarrying, college again, (this time I did graduate) followed by another divorce, and unemplyment.
This student loan has haunted me, but I was never in good enough financial condition to even think about paying it ( usually it was all I could do to keep the utilitys on).
Now however, I have had an ok job, though I am still under poverty level ( 7-10K a year) , and a single mom.
The last time I received a statement about this defaulted loan, a few years ago, the balance was over 7 thousand, 2500 principle, 2500 interest, and the rest a charge to the collection agency!
This seemed outrageous, besides the fact that I didn't have 7 dollars to spare, let alone 7 grand.
However, like I said, I finally have a job that allows me to barely make ends meet. But last week I recieved my paycheck with a copy of a garnishment "order" that my employer had recieved last month, and 15 percent of my 'disposable' pay gone.
The "order" has my balance at $8,100. It does not break down how much is principal, intereste, etc.
I also never received any order to appear in a court, or any advanced notice of any kind. I didn't know about it until after the first garnishment.
My pay also varys greatly as I work 'as needed', so I may go for a couple of months without any hours.
Now I wouldn't mind paying towards the principal, and a fair amount of interest, just to get this thing off my back, but several thousand dollars just for the collectors? That's the part that irks me.
I did call two lawyers who basically told me I was SOL, and actually lucky it is only 15%. Is there ANYTHING I can do? Is there anyway to reduce the balance, or just get out of it for long enough to give me leverage to negotiate a lesser amount?
Thank you for your help.
Re: Wage Garnishment Over an Old Student Loan
You would need to figure out where the judgment was entered, and then investigate the court file to find out how that happened without notice to you. Once you know that, it should be possible to determine if you have any recourse through the court which entered the judgment.
It sounds like, one way or another, you ultimately will end up with a judgment against you; the question seems to relate to the proper amount.