Challenge and STOP Wage Garnishment for Federal Student loan Default

By Mr. K “The Rogue Student Loan Collector”

If you default on a Federal student loan, the Dept of Education a branch of the government has the right to garnish significant portions of your wages.

The good thing is that you can challenge a wage garnishment and request a hearing on the wage garnishment. In order to appeal a wage garnishment you will need to demonstrate how the garnishment is causing you and your family members total financial hardship.

The U.S. Department of Education will forward your claim to the “Administrative Garnishment Hearing Department” and assess your financial situation. In order to challenge the wage garnishment you will need to fill out a “Request for Hearing” document, and send it to the Dept. of Education. You’ll have the choice of either having the hearing in-person, over the telephone, or in writing. If you decide on having the hearing in person you’ll have to show up at one of their 3 CONVENIENT locations San-Francisco, Chicago, or Atlanta. I guess that covers the west coast, the middle, and the east coast. LOL

…………………………………….
Mr. K’s Important Notes:
The “Request for hearing” document is used to challenge the garnishment.
In addition, make sure that you send in the “Financial Disclosure statement” document, this document is used to itemize your expenses and report your income.
BE ACCURATE! NOT PROVIDING PROOF WILL LEAD TO THE DENIAL OF YOUR CLAIM. This “Financial Disclosure Statement” document will be critical during this process, and they will closely evaluate your situation, so take your time and carefully list all of your obligations (bills), and provide copies of those bills.
…………………………………….

In the Financial Disclosure statement on one of the last pages, you will see a line that says: “Based on this statement, I think I can afford to pay $ __ per month.” This is the section where you can purpose to the Department of Education an amount YOU would like to pay. Regardless of how much they’ve asked from you in the past, while filling this section out, you should be realistic and figure out your budget. Make sure that the amount you offer is something that you can pay monthly, without the huge financial strain on your pockets.

Once all documents are submitted they will make a decision on your claim in about 60-90 days after your hearing. If the wage garnishment already started the garnishment will continue until a decision is made.

TO YOUR FINANCIAL FREEDOM,

Mr. K
“The Rogue Student Loan Collector”

Technorati Tags: Garnishment, loan, Stop, student

Student loan garnishment is an act of taking money away from your salary to pay student loans back. In most cases, the US government provides the right to remove or garnish money from your wages if you are not keeping your agreement to pay them off. Often, it is called default. Different from other creditors, the federal student loans do not need lengthy court cases and judges’ orders to remove the money from your pay. When loan default meets particular conditions, the federal government can automatically start to remove the money from your pay, and your employer should comply with your loan garnishment request.

The federal government is restricted as to the sum they are able to take from your paycheck, plus only remove 15 percent of wages. Though, any wages remaining should be equal to and higher than minimal wage times 30. If you make very low incomes, you would not have it much garnished. Other things can be subject to loan garnishment, plus these could take in tax refunds. Given only the person who has the loan receives the refinance, it is possible for the federal government to take the total amount.

But even if you have made no money, a part of the joint tax return must be subject to subtracting to pay your student loans. Though you spouse is financially answerable for the loans, you both will suffer in case loans go into default. Usually, the government cannot garnish direct wages if you did not take the loans out, though, unless you was a loan cosigner.

Technorati Tags: Garnishment, loan, student