Will A “debt Consolidation ” Company Also Help With Ed Fund Student Loans That Are Now Defaulted?
A reader asks…
I am considering looking into debt consolidation. My student loans are being garnished by ed fund from my wages. they have also just taken my Ca state income tax check. If I do debt consolidation, will they be able to stop my wages from being garnished?
(Scroll down to read responses).
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Tags: Also, Company, consolidation, debt, Defaulted, Fund, Help, Low Rate Loans, Student
September 24th, 2009 at 11:24 am
I am in a similiar situation.My loans have defaulted and the sad part is now I am back in school (I am paying cash) and cannot get any grants due to my defaulted loans.
You have two options1 quit your job and get another one (it will take a while before they find your new job and begin to garnish)
2- Just let them keep garnishing at least after a while your bills will be paid off. (if you need extra money get a second job)
Me I am going to call them and make arrangements so they won;t garnish.
September 24th, 2009 at 11:34 am
No unless you payed them off with credit cards
September 24th, 2009 at 12:06 pm
No. This is a last resort by the government to get their money after all other options have been exausted. You already have a long history of non payment so they won’t be able to stop your wages from being garnished or your income tax returns from being seized. Student loan debt can’t be grouped into any other debts you might have by the way. Sorry.