Would my wages get garnished from late student loan payments if I pay all of my other bills on time?

Question

EdFund called me and told me they might garnish wages or whatever BUT I make only $20,000 a year and I just cant afford $300 payments right now.

Answer 1

They will work with you if you try to pay them. You may qualify for a forebearance since your income is low. They cannot garhishee your wages unless they first file suit and get a judgement. If they do that then they can file a levy on your bank accounts and go after your wages. Educational loans cannot be discharged in a bankruptcy, either. Your best bet is to try to get the forebearance or perhaps an extra job to pay the loans. These people are usually good about working with you, if they know you are trying to do the right thing. If you had an extra job and only made an extra $75/week, you could pay your loans.

Answer 2

Say I owe you $100. If I pay all my other bills on time, will you stop asking me to give you YOUR money back?

If you can't afford $300 payments, then make $100 payments, or something at least! Otherwise they will come after you with a vengeance, trust me!

Answer 3

it doesn't matter if you pay all your bills on time, someone can file at court to garnish your wages. BUT if you are making some kind of payment they can't do anything. tell them you don't make anough to make that kind of payment and can you work out a payment.
also if they do try to garnish, you might be able to file a hardship claim.

Answer 4

Actually, try to apply for deferrment, not forbearance. With an income so low and a monthly payment of $300 for student loans I believe deferrment would be possible. Deferrment is when they put a hold on your loans so interest is not accrued. Forbearance allows interest to keep accruing.

Answer 5

Yes, they will. Call your student loan bankers and tell them about your situation. LOTS of new graduates are in this situation. Be proactive about this, or you will find it very difficult to buy a house or car in the future.