Legal Question in Credit and Debt Law in Texas
student loans
I took out a Federal student loan in1980, and defaulted on the loan. For 25, yrs. I've heard nothing. Recently I tried to negociate this debt, but we could not comes to terms. The agency started garnishing 15% of my pay check.First question, is this legal? The next after they start doing this, can you stop the process of garnishment by coming to some agreement
2 Answers from Attorneys
Re: student loans
We would have to go back and evaluate the timeline and who you tried to negotiate with, but you do have appeal options. Feel free to contact me if you would like to discuss -- we have experience with student loan issues.
Yours truly,
Bryan
Becker Attorneys
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Re: student loans
You need to get an analysis of your situation. I am assuming these are federally backed student loans. The next question is, who is collecting on the loan now, a third party collection agency or Ed Fund. Student loans are the only type of loan that I am aware of that allows prejudgment garnishment. That means they do not have to go to court before they garnish your wages. You have a right to a hearing with Ed Fund to address the garnishment and the amount. Asking for a hearing will not immediately stop the garnishment, but it is a step in the right direction. Depending on you income and expenses you should be able to negotiate some type of relief. My advice is to consult with a law firm familiar with student loan issues.