Hey, I live in Texas and got a letter from TG saying that they may garnish up to 15 PERCENT of my paycheck if i don't have a valid reason..ie..proof that i can't pay. Well here's the bad thing...I live at home, i pay bills but under my mom's name since i have bad credit :( Also, i work as a substitute so it's not even a full time job...
Do I have any options?? Please help!!
2007-10-12 13:55:14 · 10 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
I defaulted on my student loan in 1992 and they kept calling me and harassing me about. I finally talked to them and told them my situation, this was in 2002. I found out about the income contingency payment, it was a life saver, to this day my monthly payment id $0.00 and my student loan is out of default so now I can go back to school and get financial aid. They figure it out based on your income. I have seen it as low as $21.00 a month.
2007-10-12 15:29:24 · answer #1 · answered by redneck 3 · 2⤊ 0⤋
Step one, call them and see what you're options are. I will assume that you've ignored it because you didn't know what to do.
While on the phone with them, ask for the paper work for a hardship deferral and the paperwork for a reduced monthly payment. Fill it out, there's a good chance you will qualify for one of the two, given the situation you describe.
Deferral will put you at zero currently due (not zero owed) for a period of time and will prevent you from having to make payments for a period of time.
Reduced monthly payments will compare what you make (in your case, on average) to what they say you should be able to afford to pay. In most cases they estimate around 10-15% of your income once you're significantly over the poverty level line. Between the two points is the reduced payment gray area.
If you're working as a substitute teacher and you enjoy the work, consider going full time. For a little indentured slavery (read contract with a locked in salary) most states will pay off most or all of a teachers student loans. There are other jobs that will do so as well.
If you haven't done so already, consolidate the loans. If the balance of all of the loans is bigger than certain threshold levels, the period to repay is normally extended and will net a smaller monthly payment over a greater amount of time.
Step two. After making a few payments (anything is better than nothing, and shows you are willing to pay even if you're unable to pay in full) ask if it is possible for them to take the current outstanding balance and tack it onto the end of the loan, this will remove what you currently owe, and let you start with a fresh slate (won't remove negative credit reporting though), it will only get you quickly out of your current situation.
Step three make sure to call them in the future for any major events (job loss, job change, disability, divorce, significant illness, etc.)
2007-10-12 14:13:28 · answer #2 · answered by cyber_phobic 3 · 1⤊ 0⤋
Fill out the papers they send. They will try to take %15 of your wages, BUT...if taking that much makes it so you can't live on the rest, they can't garnish you. If you're only a substitute and don't make much...they can't PUT you in the poor house. They CAN however, take your tax refunds from here to eternity.
You can have your mother right out receipts for what you're responsible to pay to her each month. They understand that some people live as room mates etc... and don't have bills in their name...but still pay half of the utilities etc...
2007-10-12 13:59:44 · answer #3 · answered by Lisa E 6 · 0⤊ 0⤋
This is a very common problem, becuase most educations cost more than you can earn with them.
15% is getting off pretty easy, so let them go ahead and garnish your wages, in order to have some control over what they can do to you. That way, they're welcome to all the blood they can squeeze from a turnip.
They'll probably be hurting over how little 15% of your part-time income turns out to be, and it'll be their own fault for taking that route, instead of allowing you time to work your way up to a better income.
It's already their fault, for imprudently loaning money for an eduction that won't provide a decent income.
2007-10-12 14:08:56 · answer #4 · answered by A Second Witness 7 · 0⤊ 2⤋
i'm not a finance whiz or conscious of each and all the regulations related to pupil loans. My suggestion is to pay what you may, yet under no circumstances omit a value. a minimum of that way, it shows you're a minimum of attempting and it may shop you from going into default till you may arise with a extra ideal answer.
2016-10-22 05:10:23 · answer #5 · answered by ? 4 · 0⤊ 0⤋
have you used all of your forbearance? I believe that everyone has up to 18months forbearance for student loans. Use it! Also, you can call them and discuss what payments you can make. There are options like graduated payments (you pay less in the beginning and more at the end). You can not bankrupt out of student loans.
2007-10-16 12:25:14 · answer #6 · answered by klm 2 · 0⤊ 1⤋
Nope, you're gonna have to pay your debt. Student loans are nothing to mess around with, and if you're in default, it's almost as bad as dealing with the IRS. Pay up.
2007-10-12 13:58:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
there are lots of options, call your loan guarantor and ask them to help you work something out, there are deferments and holds and all sorts of options. Just call your loan guarantor.
2007-10-12 14:03:01 · answer #8 · answered by essentiallysolo 7 · 0⤊ 0⤋
Malachi chapter 3,4,5
2007-10-12 14:03:10 · answer #9 · answered by JesusIsTheAnswer 4 · 0⤊ 3⤋
TAKE THE TIME AND ASK FOR MONEY FROM PEOPLETHAT CARES AND SEPERATE MONEY AND PUT SOME UP JUST FOR THAT
2007-10-12 13:58:40 · answer #10 · answered by actress101 2 · 0⤊ 2⤋