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Student Loan with AES in default. Can they force a garnishment? – Diane

I have a substanital student loan that has fallen into default because I can not pay the large $550 monthly payments they have requested.

I sent AES and letter about a year and a half ago and told them I can pay $150 per month.

I started paying that amount and have consistently paid each month since then.

However, they have listed my loan in default and call twice a day. Can they force garnishment when I am making a consistent payment even though it’s a lesser amount?

What can I do to get this resolved?

Diane

This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.
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14 thoughts on “Student Loan with AES in default. Can they force a garnishment? – Diane”

  1. I have federal student loans that I thought were included in my Bankruptcy because when I called ACS 2 years into my Bankruptcy, they told me I had no federal student loans. I tried finding those loans for years, but they were gone. After my Bankruptcy, I applied for a FHA loan to buy a home and I was approved. There is no way I could have been approved if I had any federal student loans. But, now AES is coming after me, they’ve turned me over to a collection agency and I do not know what to do! Do you have advice, do you have a name of a lawyer that can help me? Thank you for your time. Keri

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  2. Can AES garnish wages after 8 years of collection efforts? Is there a statue of limitations on private loans that says they cannot sue for the debt?

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  3. AES/ACS whatever the name of the month is can definitely execute a garnishment.  I’m starting to believe they can do whatever they want.

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  4. My chapter 7 was discharged in 2002 wherein I listed all student loans and creditors.  No one showed up.  No one filed an adversarial proceeding.  Then 3-1/2 months later I received a call wherein there told me I had to repay these loans and had me sign a FFELP Fed Consolidation Loan and Prom Note application.  I now am to understand I should have never had to sign anything and they just made a new loan on something that was discharged.  34 CFR 685.212(c) states if loans are discharged in bk, the secretary does not require borrower to make any future payments on loan.  And yes this was AES/ACS back and forth, they’ve garnished my wages over the years, I call back and yell at them and they give my money back.  They have offset my tax returns for 4 years now though.  Is there anything I can do that you know of?

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  5. I had an AES loan from like 2008. It went into default around 2010. Now a collections agency is offering like a $3000 settlement, i think the loan was orginally 10,000 or $12,000. I wish i had the $3000. But i have not worked since 2009. I would like to put it on my bankruptcy, that i will file this year. If it were not dis-chargeable why offer a settlement? Besides it say Suntrust bank as the creditor. No mention about student debt. I wonder can this Norcross, GA company even enforce the debt as a student loan. Wondering if they can produce the loan agreement. Anyone else have any luck?

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  6. I am in a similar predicament with my SunTrust/AES student loan. I will come into some money soon that will cover the original debt of $25,000 (with interest, the debt has swelled to over $70,000). Is it it possible or even advisable to make a plea directly to SunTrust to offer to pay back the original amount and then finally close my account for good? Would making a plea to AES be better? Thank you for any advice you can offer, Georgia

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  7. I have and American Education Service Loan/ Suntrust Private loan out. I have had it for a while. I have already filed Bankruptcy and it has been discharged May, 2011. I am now recieving letters in the mail saying I owe—- this amount of money. I have talked to them 2 times about this already. I included that in the bankruptcy and they are saying that it can not be included in bankruptcy. I have done some research on the internet and I have found out that if a loan is FEDERALLY funded that it can NOT be included but it it is NOT FEDERALLY funeded, as I believe AES/Suntrust in not federally funded that it can be included. Does anyone know where I can find out to make sure that this was included on my banfruptcy or does anyone have any advice at all??? It is appriciated. Thanks a bunch!

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    • Following changes by Congress to the bankruptcy code, as of 3005 a private student loan is not dischargeable.

      A bill was introduced in Congress in 2011 to restore this option. The bill, Private Student Loan Bankruptcy Fairness Act of 2011, appears to have gone nowhere and is stalled in committee.

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    • I believe they are government loans. The interest is killing me. When I graduated the loans were worth 37k and now they are 75k. They were originally through Sallie Mae, AES bought them a couple years ago. I think they are unsubsidized stafford loans.

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    • I believe they are government loans. The interest is killing me. When I graduated the loans were worth 37k and now they are 75k. They were originally through Sallie Mae, AES bought them a couple years ago. I think they are unsubsidized stafford loans.

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      • Unfortunately at this time the only help available for private student loans is what the servicer or lender is willing to make available. They do have the power to administratively garnish wages without going to court if the loan ends up seriously in default.

        If they were government backed student loans you’d certainly have more options. I wish the news was better.

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