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Who buys defaulted student loans and garnishes wages?

Rodney Fox

in Student Loans

1 answer

1 answer

Jeffrey Rodriguez on February 26, 2019

There are about ten Federally approved collection agencies that are awarded contracts to collect defaulted student loans. The list is in the Dept. Ed. web site. There are only 2 ways to get out of default on Federal government Guarantees the 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. A good example is Default Management Services, Inc. It is the cheapest that I have seen and give a 100% money back guarantee on their services. You can search on Google the name of the company to get the phone#. Ask for Doug.

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