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Home > Ask The Get Out of Debt Experts > I Am Afraid ECMC is Going to Garnish My Wages for an Old Sallie Mae School Loan. – JoAnn

I Am Afraid ECMC is Going to Garnish My Wages for an Old Sallie Mae School Loan. – JoAnn

“Dear Steve,

I have a 24 year old student loan that started out at $2,300 and is now over 10,000. Sallie Mae had the loan and kept some of my taxes years ago.

5 years ago I put it on a Bankruptcy not knowing it was not discharged. Now ECMC has the loan I tried to get it out of default a year ago when a my elderly Father died changing my financial situation.

This year ECMC kept my taxes of course I was not notified. now they want me to consolidate my loan and if I do that I will end up paying over 27,000 at a payment I can not afford.I make roughly 24,000 a year.

Also this was a Gaming school in Las Vegas which is now been closed for over ten years do to Bankruptcy. I had no diploma or GED barely an 8th grade education.when I was given the loan, the school told me it was no big deal gave me a small math test in which they provided the answers to. I could not get a job dealing without a diploma or GED…I am embarrassed to say I still have no Diploma or GED. I have heard that you can get the loan discharge: False certification if you were not tested properly. And had no ability to benefit.
I have started to pay ECMC 50.00 monthly, they want the Loan Consolidation Form signed and have started calling daily again.

Thank you so much and sorry this background is so long. (There is more but won’t bore you with the ugly details)

Can ECMC garnish my wages if I continue to pay them? Do I have to consolidate? Help! What can I do? What can they do?

Should I try to get the Loan Discharged through the failure to Benefit? What do you think my chances are?
I am desperate. Too many nights lying awake afraid they will garnish my wages then I can’t pay the bill just to live day to day.

Jo Ann”

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The Answer

Dear Jo Ann,

I’m curious if you ever received a reason why your student loans were not discharged in your bankruptcy. They were old enough at the time that they should have been eligible to be discharged.

The position that the loan should be waived because the school closed does not seem like it would fly since it appears that the school closed 14 years after you attended it. But it does not hurt to try I guess. Here is the Sallie Mae form to apply for loan forgiveness due to a school closing.

You may want to adjust your tax withholdings so you are getting more back in your check each month and not leaving refunds waiting to be captured.

If you have an agreed upon repayment plan with ECMC and you are making the payments, they would have no reason to garnish your wages.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

I Am Afraid ECMC is Going to Garnish My Wages for an Old Sallie Mae School Loan.   JoAnn
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I Am Afraid ECMC is Going to Garnish My Wages for an Old Sallie Mae School Loan. - JoAnn by

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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.
  • Steve Rhode

    The student loan was so old that it was previously dischargeable if the original bankruptcy had been filed by 1998. But you are right, by the time it was filed the student loan was no longer eligible for discharge.

  • Brahambaseball

    Student loan debt can only be discharged in bankruptcy if there is a determination by a bankruptcy court that repayment of the student loan debt will impose an undue hardship on the debtor and the debtor’s dependents. Because you did not seek discharge of your loans on the basis of undue hardship, your student loan debt is non-dischargeable. For further information, you may refer to 11 U.S.C. § 523(a)(8).

  • Brahambaseball

    Student loan debt can only be discharged in bankruptcy if there is a determination by a bankruptcy court that repayment of the student loan debt will impose an undue hardship on the debtor and the debtor’s dependents. Because you did not seek discharge of your loans on the basis of undue hardship, your student loan debt is non-dischargeable. For further information, you may refer to 11 U.S.C. § 523(a)(8).

    • http://GetOutOfDebt.org Steve Rhode

      The student loan was so old that it was previously dischargeable if the original bankruptcy had been filed by 1998. But you are right, by the time it was filed the student loan was no longer eligible for discharge.

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