how do i go about trying to settle my debt i'm on a limited income and have other concerns; such as medical issues; and child support that i must pay; where can i seek assistance that will actually work with me; on a flexible timetable
2006-12-01 16:28:09 · 8 answers · asked by big daddy 1 in Education & Reference ➔ Financial Aid
If you are on disability you can apply for a permanent disability status and get your loans permently written off ONE time only..if not, they have deferments/repayments such as interest only, income sensitive where you pay from 2% to 50% of your incom as long as it's min. the interest, underemployment, unemployment, etc. If you are past due, they will take that amount and just add it to the balance and you start fresh...contact your lender for these things. Gl
2006-12-02 03:27:01 · answer #1 · answered by chilover 7 · 0⤊ 0⤋
Call the government agency and let them know your situation. They will be rude but make sure you tell them you are going to pay what you can. If you have to pay $5, do it.
Only so much of your paycheck can be garnished and child support is probably taking up that amount.
"What about non-tax debts owed Federal Agencies?
The Debt Collection Improvement Act authorizes federal agencies or collection agencies under contract with them to garnish up to 15% of disposable earnings to repay defaulted debts owed the U.S. government. The Higher Education Act authorizes the Department of Education's guaranty agencies to garnish up to 10% of disposable earnings to repay defaulted federal student loans. Such withholding is also subject to the provisions of the federal wage garnishment law, but not state garnishment laws. Unless the total of all garnishments exceeds 25% of disposable earnings, questions regarding such garnishments should be referred to the agency initiating the withholding action."
2006-12-02 00:35:04 · answer #2 · answered by Laughing Libra 6 · 0⤊ 0⤋
The best thing to do is to go straight to the source. Tell them you would like to work out a payment plan, and let them know your situation. They will work with you if you approach them. By ignoring them, they will be less likely to be flexible. Contacting them first will show you are responsible and trying to handle your own debts. Just give them a call. That's the first step to getting this burden off your shoulders.
2006-12-02 00:32:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Contact whomever is servicing your loan. AES Graduate Loan services or Direct Loans or whomever it is, and explain your situation to them. I have also heard of a free consumer credit counseling program that is available through the state, I believe. I just suggest being open and honest -- they will be more happy to receive a little money at a time from you than to receive none at all. Plus, this will become part of your credit history record and that is never helpful.
2006-12-02 00:33:19 · answer #4 · answered by Shibi 6 · 0⤊ 0⤋
Approach the government agency that has your account in default. Enroll in the Rehabilitation program. Its flexible on the level of payments that you can afford. Then it will immediately repair your credit.
2006-12-02 00:30:06 · answer #5 · answered by Laughing Man Copycat 5 · 0⤊ 0⤋
You should be able to talk to the company and receive a payment arrangement that is based off income.
2006-12-02 00:30:42 · answer #6 · answered by bustydollbaby 1 · 0⤊ 0⤋
Call them. They are probably the nicest people ever to deal with. You can either halt your payments temporarily, or get on a reduced monthly payment.
2006-12-02 00:31:18 · answer #7 · answered by maamu 6 · 0⤊ 0⤋
A second job maybe?
2006-12-02 00:29:56 · answer #8 · answered by Mike 4 · 0⤊ 1⤋