Re: Need student loan advice - how to handle Collection Agency

Posted by J (209.145.133.228) on July 01, 2002 at 17:51:41:

In Reply to: Re: Need student loan advice - how to handle Collection Agency posted by Jade on July 01, 2002 at 13:24:53:

According to the HEA sec 488A, they cannot garnish in a state that doesn't allow garnishments. Although, I'm not sure which state's laws apply in your case.

If you have more than one loan, you may be able to consolidate, but you may have to make 3-6 payments in order to do so.

The important thing is to take steps now so you don't have to worry about garnishment. Go to www.ed.gov, find a copy of the HEA and take a good look at the sections pertaining to defaulted loans. You still have many options and hopefully you won't have to worry about garnishment.

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