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Home > Reader Questions > My Wages Are Being Garnished for a 1985 Student Loan. – Jody

My Wages Are Being Garnished for a 1985 Student Loan. – Jody

I have a problem with student loan(s) and my wages are currently being garnished and have been since December 1999.

Between 1985 and 1989, I took out student loans to the total of approximately $14,000. Being a single mother, thought education would get me a better job than a factory job. So I got my education and could not find a job that would pay me enough to pay rent, electricity, gas, cable (could not afford to go to the movies, or other entertainment), food, gas for my car and up keep on the car, and daycare (which at times I was responsible for all or part of it).

In 1998, I filed bankruptcy and included my student loans (but because of bad legal advise, no hardship paperwork was included in the bankruptcy) which at that time amounted to approximately $23,000. The garnishment for the student loans started in December 1999, approximately a year and half after my bankruptcy had been finalized.

As of today, approximately $25,000 has been paid between the amount I tried to pay before filing bankruptcy, one tax return taken, and the garnishment, and according to the NSLP, I still owe approximately $39,000. If you look at the history of my payments, you will see that in all this time, only $9.95 has ever been applied to the original principal of $14,000.

In that I feel that I have paid what I originally borrowed and some interest or at least the same amount in my bankruptcy, could it be possible that the rest of what is claimed that I still owe, be forgiven and close my account, so that I can move on with my life and not hang over my head the rest of my life.

How can I get the collection agency that is collecting money for this old student loan and have the garnishment stop and accept what they have collected as payment in full. The original $14,000 that I borrowed will end up costing me more than my house.

Jody

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My Wages Are Being Garnished for a 1985 Student Loan.   Jody
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Joed

    looks like your SOL!!! lol

  • prosperfc

    what state are you in? was there ever a judgment entered for this? have you tried contacting the original attorney and telling him to help you through this pro bono since his error got you into this mess?

  • prosperfc

    what state are you in? was there ever a judgment entered for this? have you tried contacting the original attorney and telling him to help you through this pro bono since his error got you into this mess?

  • Jluce

    when I filed they could be included in a bankruptcy but they needed a Hardship form, which my lawyer at the time did not feel necessary (I tried real hard for him to do this) because he had not had anyone in the past have a problem with student loans after a bankruptcy. If I would have filed the Hardship paperwork like I wanted, I would not be having these problems now. And my biggest points here are 1) they waited for a year and a half before they started the garnishment, 2) they have collected more than what was in the bankruptcy pettion, and 3) this amounts to indentured servitude because I do not make enough money to pay this, they take 15% of my wages and I have to pick up second and third jobs to make up the difference and be able to pay all my bills: electric, rent, gas, car payments (no public transportation in my town), insurance for the car and rental, food, gas for the car, up-keep for the car, etc…. There should be a dollar and a time limit for such things. I did not sign up for an interest only loan and that is all that is barely being paid….there has to be some kind of help and I know I am not the only one is this mess.

  • Taxwork

    Student loans, cannot be discharged in Bankruptcy.

  • Taxwork

    Student loans, cannot be discharged in Bankruptcy.

    • Jluce

      when I filed they could be included in a bankruptcy but they needed a Hardship form, which my lawyer at the time did not feel necessary (I tried real hard for him to do this) because he had not had anyone in the past have a problem with student loans after a bankruptcy. If I would have filed the Hardship paperwork like I wanted, I would not be having these problems now. And my biggest points here are 1) they waited for a year and a half before they started the garnishment, 2) they have collected more than what was in the bankruptcy pettion, and 3) this amounts to indentured servitude because I do not make enough money to pay this, they take 15% of my wages and I have to pick up second and third jobs to make up the difference and be able to pay all my bills: electric, rent, gas, car payments (no public transportation in my town), insurance for the car and rental, food, gas for the car, up-keep for the car, etc…. There should be a dollar and a time limit for such things. I did not sign up for an interest only loan and that is all that is barely being paid….there has to be some kind of help and I know I am not the only one is this mess.

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