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  1. #1
    Join Date
    Feb 2008
    Posts
    2

    Default Student Loan Garnishment

    I have questions about student loan garnishments. I was offered the ability to pay 50.00 a month and this would eventually , after 6 to 12 months take the loan out of default. I am in Washington state.
    My immediate concern right now is I am wonderning HOW I can prevent them , if possible from garnishing my IRS tax return? It is all such a scam. I borrowed 5,000 many many many years ago. 10,000 total about, and I paid back about 5,000 when I came back home from school. Now I owe 28,000. When I moved out of state, then I did not receive mail from the student loan collection agency for the longest time. I was young and dumb, then suddenly , out of the blue, My 2,300.00 tax return was garnished. This year I have a very big return , but I also have a very BIG LoAN with major interest which has attached now? This 5,000 balance has turned into 27,000 they are saying?
    I plan to purchase property , raw land and sell it. Or just continue doing car or RV auction and turn the money over to make payments on this loan. i need to do somehting wiht this balance and it takes money to make it. I need my income tax return. 50.00 or 100.00 payments are not going to do anything.
    If I enroll back into class , will this temporarily defer any garnishment? Am I going to have to file my taxes late until my loan is out of default to get my tax return?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Student Loan Garnishment

    You can ask your lender if you would be entitled to a deferment if you enroll in classes.

    When you don't pay on your loans, as you have found out, the amount can compound quickly due to late fees and interest.

    Try to set your exemptions with your employer such that you do not get a refund, or get a very small refund.

  3. #3
    Join Date
    Aug 2008
    Posts
    1

    Default Re: Student Loan Garnishment

    A special messege to CHERY0205, If you only have a garnishment order against your taxes only, then they will work with you. I can tell you right now that they will not accept $50 or $100 based on the large amount that you now owe. After you have made payment arrangements with them and pay on time 6 to 8 months then they will release garnishment order against future tax refunds. They will want to know all your finanacial information and they will determine what you can afford. I will tell you that if you don't work a deal out real soon, they will garnish part of your salery too. If you have an administrative garnishment order against you then you are screwed. They will not work any deal with you what so ever to remove the administrative garnishment order until it's paid in full. They will put a garnishment order of 15% against your salery until it's paid plus all your tax refunds as well. It sounds like to me you have been ducking the Feds for years Chery and now they are fed up with you. You knew that you owed money to the student loans. Don't even try to tell us all that they didn't contact you over the years by telephone or the mail. Even if you collect social security when you get old, they will garnishment some of that. You can't even get a FHA home loan until you fix it. So bite the bullet and pay up. I have personally been in the same situation except I didn't owe that much in interest. Everytime I have moved over the years, they found me. I finally paid them off so I can get an FHA home loan. You can't avoid death and taxes. Good luck.

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