Hi all: I am very new to this forum so please bare with me... After years of denial, I've finally said enough is enough and I'm attempting to clean up my financial difficulties. I'm in the process of pulling my credit score and addressing credit card issues, etc. But I'm also dealing with student loans. I originally had all my graduate schools loans (private and fed) through Kentucky Higher Education. At some point, the privates got transferred to Access Group and the federal were transferred to American Student Assistance. The feds were then moved to some place called Delta. I've not started to tackle the privates yet, but I am working on the federal. According to a pieced I got in the mail today, they are attempting to garnish my wages. I'm in default and Delta says my debt with them is about $76K. I'm not sure what is principle and interest versus penalties. I did some research on rehabbing the loan and when I called Delta to ask, they told me I'd have to make 10 payments of 1.5% (or about $1,140). I can't afford that. My questions are: 1. Is Delta even the correct place to start? KHE and ASA each passed me along but do I have any rights with them? 2. Do you have any suggestions about how to negotiate a smaller payment? I do want to fix this, but I also know I can't afford that. 3. What other advice do you have? What else should I know? This is all very new and any suggestions would be greatly appreciated. Thanks in advance!
Years ago my husband and I both had problems with student loans. What we did was go for a Direct Loan, and used the income contingent payment plan. If that doesn't work, then you are always allowed a "reasonable and affordable" payment plan. You have to fill out some financial forms showing all expenses and then negotiate from there. How do you know they are trying to garnish your wages? You should have had a notice about requesting a hearing before garnishment began. If you ignore the letter then they will garnish.
