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Full Time Student, Out of Cash, Wages Being Garnished by AES/PHEAA. Help! – Keith

“Dear Steve,

I have a family of four and spouse who is an fulltime student. Income cut in half because of economy. Sinking fast and have exhausted all savings and 401k trying to stay afloat

My wages are being garnished by AES/PHEAA for defaulted student loan. I requested an economic hardship hearing in writing at the end of February. It is now the end of May and I still have not heard anything back formally. Every time I call I get the run around or they try to get me to make payments on top of the garnishment. I have a family of four and spouse who is a fulltime student. My income has been cut in half because of economy. Sinking fast and have exhausted all savings and 401k trying to stay afloat. I would like to rehabilitate my loan but I’m not able to at this moment. What are my options for resolving this matter at this point.

Thank You


Dear Keith,

I’m so sorry you’ve gotten the run around. The best course of action at this point is to nag them. Call every day if you have to. The kind of delay you’ve experienced is unacceptable.

The good news is that AES appears to offer repayment through the Income Based Repayment program (IBR). I’m not sure if that is the program you applied for. More information can be found here.

If you have other debts you are trying to service as well, find a local bankruptcy attorney and go visit them fast. Shedding the other debts will give you some extra breathing room to make ends meet

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

READ  American Education Services (AES), Xpress Loan Servicing, Student Loan Solutions - Consumer Complaint - 3-12-2012

About the author

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.

1 Comment

  • This goverment agency is so corrupt.  They can mess with your wages, and take your income tax away from you.  I am a hard working american. I was getting $200 out per month from garnishment wages from work for over a year. Thinking these were payments, well in their eyes it wasnt and they took my whole Income Tax Check from me as a payment without notification.  I am a single father of 1 and works very hard to support my family.  I wrote to President Obama and had not heard back from him.  So much from his he is there for the college students, what about the past college students who have loans!!!   I was gonna vote for Obama, but no longer.  PHEAA is a EVIL and have no heart for the Hard Wokrkng American

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