Chelsea has a question about her defaulted student loans

I was in default and garnishment of wages was put in place. I am now in rehabilitation with an agreement and making payments. I requested hardship to end garnishment, filed the paperwork for it and was told it would take 30-60 days for hardship decision. It is now day 90+ with no decision and I am in a bad financial bind due to the garnishment. The request has been escalated to region twice due to number of days and I was told decision could come any day but this is day 90+. Is there anything else I can do?

Administrative Wage Garnishment – There Are Ways to Ease the Pain

On today’s show we tackle Chelsea’s question and help her better understand her options. Student loan default doesn’t need to be a financial death sentence – you’ve got choices, but you need to be careful to sure that you’re making the best one for your situation.

Some of what you’ll hear today includes:

  • When requesting a hearing will stop an administrative wage garnishment – and when it won’t

  • The meaning of financial hardship, and what you’ll need to prove when using this argument as a shield against wage garnishment

  • Why the government doesn’t always need to grant a hearing on a claim of financial hardship

  • How to get a rehabilitation agreement with the lowest monthly payment

Get My Best Student Loan Advice (FREE)

Enter your email address and I'll send you new episodes and other updates by email. 100% free, and you can cancel at any time (but you won't want to).

Powered by Kit