I have an outstanding student loan from about 20 years ago. The Department of Education finally sent me a letter saying they will be garnishing my wages. I have 30 days to return a hardship claim. Based on my income, I have no doubt I will qualify. I need to know if anyone knows a forum or website where I can ask questions about the best way to fill out the claim. I just want to make sure I do this as well as I can. I don't want to inadvertantly raise any red flags but I want to present my claim as best I can. Thanks.
There are a couple legal web sites that might be of use. Had you considered calling to see if you get someone friendly that can help you with the parameters. Sometimes with the government you can get lucky and have someone actually help you qualify for the exemptions. Generally, I say no phone calls....but hey you might be able to do so anonymously (since it's government).
Just fill it out and enter the numbers so that your total income just about equals your total expenses, and so that very little (~50$) remains to pay their hardship payments. In other words you have some fixed expenses...be truthful with them since they can be checked...auto insurance, utilities, etc. But there is room to "pad" the form for such things as clothing, food, entertainment, etc. For example even if you don't spend $100 a week on food, you could say that you do....or even if you bring lunch from home you could claim that lunch out every day costs XX$$'s. In this way you can adjust your expenses to almost meet your income. All the student loan folks do is plug your numbers into a spreadsheet, and as long as it shows you only have a little money left to pay them , then that is what you will pay
That is exactly my situation. I have my expenses (rent, utilities etc.) and no problem providing documentation for those. However, those expenses (food, clothing) that they give you a max, amount to use, if I used the max. allowed I would be in the red every month. So, I just want to know how close to my net income should I come? I don't want them to be able to garnish a penny from me. I was worried if my total expense exactly equaled my net income it might raise a red flag although all my financial records are legit. Thanks all.
Hold on! YOU DO NOT WANT THEM TO GARNISH YOUR SALARY You fill out the paperwork like I described above, leaving VERY LITTLE showing as excess income! (that you could potentially pay them each month) You want to enter into a "rehabilitation" / repayment agreement with them for this small amount ... IF THEY DO GARNISH YOUR SALARY, STATE LAWS DETERMINE HOW MUCH THEY CAN TAKE - IT WILL BE BETWEEN 10% - 25% OF YOUR TAKE HOME PAY!!! (Unless you make the minimum wage or less) REGARDLESS OF YOUR OTHER EXPENSES THEY DO NOT CARE AT THIS POINT, THEY WILL GET WHAT THE STATE ALLOWS
now that they have found you they are not going to give up until they get paid, either through a repayment plan you make with them or by them doing the administrative wage garnishment!!!
Re: Questions about wage garnishmen Do a search here on rehabilitating a student loan. They accept as little as zero per month according to the website (you'll find a reference to it here -- just search. ) Lemme know if you need help.
Re: Questions about wage garnishmen Thanks goldhummin. I planned on getting into the rehab by the end of the year (just can't afford it right now) but first I need to make sure they couldn't get my money through wage garnishment. And since I can show that my expenses are equal to my net income I"m sure I"ll qualify for a hardship claim.
Re: Questions about wage garnishmen Sounds like you are on track, then. Since you basically have zero disposable income, perhaps they'd go for the rehad now, and make your payments zero. I read on their web site that this is a possible payment amount.
