Consolidating student loans in garnishment rules
But before I get to that, we need to evaluate your larger financial situation. If there is other debt that is holding you back from making your regular full student loan payment you should think about filing bankruptcy to eliminate that debt. Dear Steve, Student Loan in default. Additionally, the wage garnishment will now stop after five payments made under the new rehabilitation process. Using this solution you can get out of a wage garnishment and bring your loans current again, fairly quickly.
Once you do that you can instantly elect to enter one of the income based repayment plans where your monthly payment is based on your income or available budget. The rehabilitation payments would continue till you have voluntarily made the agreed-upon payments on time and the loan has been purchased by a lender. The fact you are unable to make your agreed upon regular student loan payment may be a symptom of a larger problem and it should be thoughtfully examined. Just because you are in default it does not prevent you from consolidating your loans into a new one.
This would get you back on a ten year loan elimination payment. Susan Don't miss my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. The old delinquent loans will be paid off. This payment would be on top of the Administrative Wage Garnishment until your loan was considered rehabilitated. If you need to flag this entry as abusive, send us an email.
If however the issue is simply one of insufficient income then what I'm about to tell you will do the trick. Even a loan rehabilitation won't erase your delinquent repayment history so what's the point anyway.
So having your articles to read is so helpful. Don't miss my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Ultimately, I just want to know what my rights are before approaching the company that holds my account as they have not been very helpful thus far and I don't see that changing. So the answer to getting your federal student loans out of default is actually to just roll your loans s into a new Direct Consolidation Loan with the U.