Last year I made a deal with Louisiana state Finianical aide that I would send them money every month if they would stop garnishment of my check .Which they did but as luck would have it after making three payments my boyfriend wrecked my car which they deemed total and they person who hit him had no insurance and what mines paid left me still having to pay.So after getting another car three months later I get into an accident and total out a car.So thats two cars along with getting down payments together and paying my other living expenses and it put me behind on everything.I could not afford to make my payments on my loan anymore. They started to garnishments again, they take out about $350 a month and I can not afford that.I only owe $4300 left and when i called to explaine see if there was anything I could do they said the only thing left is for me to send around the same amount they are taking out for six months then they stop garnishments again and put me on another payment schedule. Is there anything I can do ? Any advice would be helpful....
I'm assuming your loans are in default? If so, ask about loan rehabilitation. Among other things, the payment is usually something like 1.4% of your balance. If you make 12 consecutive on time payments then your loan is re-guarranteed, your interest rates drop, collection costs are refunded, AND best of all they expunge the negative information on your credit report. Check out this link to the Department of Education: http://www.ed.gov/offices/OSFAP/DCS/repay/consolidation/index.html I'm not sure if you meet the eligibility requirements, but it's definitely worth asking about. Good luck!
if she is trying to get out of a garnishment, she may not want to do rehab.. you may want to consolidate your remaining balance,.. it will increase the amount of money you owe but you will be in a better position to negotiate payments you can afford w/o the garnishment. it will pay off your current loan and give you a new trade line.... ask about both of these options.
