QUESTION
Does a student loan service, such as Sallie Mae have the right to garnish my wages even though I am making any type of payment?
Asked on Apr 06th, 2012 on Debtor and Creditor - Nevada
More details to this question:
Hello, I owe Sallie Mae (student loan) a great deal of money for my education. I am currently on disability so my finances have taken a big hit. Before my disability I couldn''t afford to make the payment of $700.00 a month that they were asking so I made payments os $25.00, and even that was pushing it. I know it was no where near what they were asking but its all I could afford. Now, with me not working and collecting disability, I''m not sure what I can afford, if anything at that. Sallie Mae is threatening to send my cases to the lawyers whom will then garnish my wages. Do they have the right to garnish my wages even though I am making some , although small, type of payment?
1 ANSWER
3 Awards
If you are not paying the agreed upon amount per your loan contract, then you are technically still in default and a lender can sue to obtain a judgment and garnish your wages. Student loan providers will typically garnish 15%. Depending on your disability your loans may qualify for discharge in bankruptcy. SSD can be garnished if you default on student loans, provided they are federally backed loans. I suggest you consult with a bankruptcy attorney in your state.
Answered on Apr 06th, 2012 at 6:27 PM