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Student loan garnishment question

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Latest post Wed, Dec 21 2016 11:24 AM by ca19lawyer2. 3 replies.
  • Wed, Dec 21 2016 9:32 AM

    Student loan garnishment question

    I have a question about a federal student loan garnishment that has been taken out of my disability for the past several years.  A little back history is needed to help explain my problem.  I was originally on disability because I was on dialysis.  Eventually I got a transplant about 4 years later.  So I am considered to not have a permanent disability. I am still on disablity because I am in the Vocational Rehabilitation program.  About a year after I started to receive a disability check, the government garnished my wages for loans I took out in the early '90's.  This wasn't a surprise because I had used all the of the forebearance and consolidations options available at the time because I wasn't making enough as a cashier to pay for more than living expenses.  I do realize that once I find employment that this garnishement will continue.  

    My issue is that another company, Pioneer, has been sending me bills and notifications that they are starting proceedures to garnish my wages.  Can they do this at the same time the government is already doing this and for the same loans?  It would be like paying off the same debt twice except with different garnishers.  USA funds also sends me bill notifications but haven't sent garnishment proceedings yet.  

    Is this legal?  Can they take 2 different garnishments out of my paycheck for the same loan after I find a job?

    Thank you for your help!

     

  • Wed, Dec 21 2016 10:38 AM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,431

    Re: Student loan garnishment question

    THe Total Forgivness Progam is full of rules which to me seem very favorable to one who has yet to get off disability or find employment ....not my area of any expertise ...find a better guide in this forest. 



  • Wed, Dec 21 2016 11:05 AM In reply to

    Re: Student loan garnishment question

    jackiemich:
    My issue is that another company, Pioneer, has been sending me bills and notifications that they are starting proceedures to garnish my wages.  Can they do this at the same time the government is already doing this and for the same loans?

    Technically no but it could start before you can get it fixed.  DO NOT ignore this.  Start with who is actually doing the garnishing on behalf of the government now.  Contact them and see if they can intervene with the other 2 collectors.  It appears that the government has farmed it out to multiple collectors and one hand does not know what the other is doing.

    Second contact Pioneer and USA Funds and inform them that [creditor] is already garnishing your disability check for these loans and they cannot do so multiple times.  They may require proof that this is happening.

    Last:  open a complaint with the Consumer Finance Protection Bureau.  You can do this on line.  The government has taken a LOT of heat over the tactics and abuse by the collection agencies they send their accounts to and this agency may be able to intervene on you behalf as well.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Wed, Dec 21 2016 11:24 AM In reply to

    Re: Student loan garnishment question

    jackiemich:
    My issue is that another company . . . has been sending me bills and notifications that they are starting proceedures to garnish my wages.  Can they do this at the same time the government is already doing this and for the same loans?

    "Can they [sic] do" what?  The company DID send you "bills and notifications," so it should be obvious that it CAN do that.  It also CAN "start[] procedures to garnish [your] wages."  Whether it will be successful is not something we can discern.

     

    jackiemich:
    It would be like paying off the same debt twice except with different garnishers.

    It would?

     

    jackiemich:
    Can they take 2 different garnishments out of my paycheck for the same loan after I find a job?

    For the same loan, no.

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