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Can you be garnished if receiving social security on outstanding student loan in PA?

Chelsea Hayes

in Student Loans

1 answer

1 answer

Justin Parker on August 26, 2018

Yes, your social security benefits can be garnished if your Federal student loans in default. There are only 2 ways to get out of default on the Federal guarantee student loans. . Contact your collection company or student loan servicer and request to enter the rehabilitation program. Most people qualify, but I have seen some refused when the defect is more than 10 years of age. In the rehabilitation program, you will need to make 9-12 on-time payments, in addition to their however. After the 9-12 on-time payments, they should stop the garnishment, but you will remain in a default status until your Rehabed loans are sold to a new lender. In the past, which was an easy process, but in these turbulent financial times, other lenders are not buying rehabed loans. Thus, with this option of the loans will remain in a Default state for the foreseeable future. . The second way in which you can get by default and have its embargo lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will probably not release the loan for consolidation while in a seizure of the stage. The good news is that there are some companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. If you need additional help, click on my user name, "studentloaner", below. ****In reality, you should carefully check their contracts. The student Loans can'T be consolidated after default. Check before you count on the service, guarantor, or lender to do anything. Read the fine print. I speak from personal experience*** The above statement is incorrect. By default the Federal loans for students that are not being garnished, it CAN be consolidated. I do it every day. If a defaulted loan you have a wage garnishment is attached, then the underlying non-payment of the loan may or may not be consolidated, according to the guaranty agency. Approximately 80% of the guarantee agencies will allow a consolidation while be garnished, the other 20% do not. I have helped people with their Federal student loan problems since 03/2001, so I know what I'm talking about.

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