Question: Dear Steve, $35,000 has been collected on my $20,000 student loan debt, and none of it has been applied to the principal only to interest. You told me that “if the mandatory amount garnished is insufficient to cover the interest owed each month, then no payment would be applied to the underlying principal amount.” …
Question: Dear Steve, In April 2019, I was diagnosed with Leukemia. I was forced to leave my employer and start a long process of treatment that would eventually lead up to a bone marrow transplant. Currently, I am in full recovery from the transplant and not yet able to work. I am still on recovery …
Question: Dear Steve, My Social Security Benefits are being garnished presumably for child support. The issue is that the garnishment is specifically for attorney fees and this attorney is using an old Child support order. I have paid all of my child support and arrears. There are other legal issues but I believe that the …
By Eric Olsen, Executive Director, attorney, HELPS Nonprofit Law Firm In 1996 a federal law was passed governing the collection of debts owed to federal agencies. It is called the “Debt Collection Improvement Act of 1996.” This law authorized a 15% garnishment of social security for various debts owed to federal agencies. Each agency is …
Question: Dear Steve, While I was employed, I was paying child support through my employment check. I have since then taken very ill. Child support now is garnishing my social security disability check. Without going in to a lot of detail child support is in contempt of court. They were applying my payments from my …
Question: Dear Steve, SSI BENEFITS ARE BEING GARNISHED FOR 30 YEAR STUDENT LOANS BY COLLECTION AGENCY THAT I CAN’T GET TO ANSWER THE PHONE OR RETURN A CALL –15%. THINKING ABOUT FILING CHAPTER 7 BK FOR HARDSHIP AS I’M RETIRED AND THIS IS HARDSHIP ON ME? WILL A BK STOP THIS OUTRIGHT? Omar Answer: Dear …
Question: Dear Steve, I am in default of my student loans. The government has attached a 15% offset payment from my monthly Social Security plus any state and/or federal tax refunds. This offset has been ongoing in excess of 3 years. Now, Account Control Technology has taken 100% of my Social Security check. My attempts …
Question: Dear Steve, I lost my job and was unemployed in 2013. At the time, Sallie Mae and Nelnet were my student loan servicers. I applied for and was granted deferment or forbearance and had to submit my paperwork in triplicate because Sallie Mae has my loan in two bundles (of loans). I tried to …
Question: Dear Steve, Just contacted my Loan Servicer who offered me a $5/mo rehab program for 9 months. I am doing paperwork now and making arrangements for auto deduction. I am also 62 this year and eligible for early social security benefits which I haven’t decided as yet. Once my loan is under the rehab …
Question: Dear Steve, This question is for my fiancé. She was unaware that her student loans went into default and ultimately began to garnish her wages. They gave her the option to do the loan rehab, but only set her up for 2 automatic payments instead of 3 which she was told would get her …