Administrative Wage Garnishment Hardship Hearings for Student Loans

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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

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