Consider setting up electronic deposits to secure you are never past due or miss a payment. Look into Other Repayment Plan Options.
Income-driven repayment (IDR) plans are designed to make your student loan debt more manageable by reducing your monthly payment amount.
If you’re in a tight financial crunch, you may qualify for a deferment or a forbearance. However, there are two important things to consider: In most cases, interest will accrue.
One option for getting your loan out of default is loan rehabilitation. You must agree in writing to make nine voluntary, reasonable, and affordable monthly payments within 20 days of the due date, and make all nine payments during a period of 10 consecutive months. Under a loan rehabilitation agreement, your payment amount that is equal to 15 percent of your annual discretionary income, divided by 12. When your loan is rehabilitated, the default status will be removed from your loan, and collection of payments through wage garnishment or Treasury offset will stop. You’ll regain eligibility for benefits that were available on the loan before you defaulted, such as deferment, forbearance, a choice of repayment plans, and loan forgiveness, and you’ll be eligible to receive federal student aid. Also, the record of default on the rehabilitated loan will be removed from your credit history.
If wage garnishment is causing a financial hardship for you and/or your household, you can demand a hearing. You’ll need to show not only that you are unable to pay, but that your monetary position has considerably evolved due to injury, a divorce or a cataclysmic illness. If you are unfit to provide for your basic living expenditures and can show there is a financial hardship, the wage garnishment may be suspended.
Getting an order of intent to garnish your wages can be extremely troublesome. You may not know what to do or if you have any workable rights–that’s why employing an expert makes sense. At Student Debt Modifications, we’ll make sure that the information contained in the letter is correct, that you know your rights, and figure out the options you have for ending wage garnishment.
We will get to know you and the circumstances of your situation,including your lenders,employment and financial obligations.
Next,we will gather information on loan status,balances and payment history,so we can identify the finest solution for you.
Once we have analyzed your situation,we will go to work, and help get you out of default.
If you are in crisis of student loan delinquency and are dealing with wage garnishment, you have the right to: