I’m wondering if anyone in your organization has knowledge of a process change regarding student loan/social security garnishment.
My elderly mother lives off of her social security income and for the past few years it has been garnished for repayment on a student loan she co-signed for my brother about 20 yrs. ago. Two days ago she was contacted by an outside credit agency, the rep. told her that the debt would no longer be handled through social security and would instead be handled by the collection company he works for. Her most recent check no longer reflects the garnishment. The rep also mentioned that if she made another series of payments she may be eligible for a break from payment for awhile.
I realize this situation is not the type you typically advise on, but I was hoping you may have some thoughts on it.
Has there been any change that you know of to the student loan/social security garnishment process, or do you know of any other cases where others have had a similar experience? Also do you have any advice for us on how to proceed?
Thanks so much for all you’ve done and all you do!
It sounds like the government outsourced the collection and this may just be a temporary break from the garnishment.
It’s certainly worth evaluating what the collection company may be offering.
Ironically the garnishment may be subject to a lower payment since their are limitations about just how much can be garnished.
I’d encourage to have an open dialogue with the collection company and see what they may be offering. I would be guarded though about disclosing any assets your mother may have. Collectors are not all the enemy and often they can help to facilitate a solution that their client has authorized.
I have to ask, is there a reason your brother isn’t helping with this?
Please post your responses and follow-up messages to me on this in the comments section below.