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Student loans, Allied Interstate, etc.

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Posts: 4
Credits: 184.95
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Alright, so I've gotten myself in deep trouble with my student loans.
They are in default and are being handled now by Allied Interstate. I
have been ignoring the problem and am forcing myself now to sit down
and deal with it, but I don't know where to start.
Allied has called
one of my employers multiple times and most recently has told my
employer that they will be garnishing my wages. Is this legal? They
have not sent me anything about this, I had to hear it from my
employer.
I just need to know what I should do first. Call Allied? I don't know what to say. Can anyone help?




SOAPLADY


Debt Samaritan
Posts: 17181
Credits: 474368.58869987

Sub: #1 Yup...it is called administrative wage garnishment. Your employe
Wed, 04/01/2009 - 09:05

Yup...it is called administrative wage garnishment. Your employer has probably been sent the paperwork.
Does Allied or your guarantor have your correct address? Are you reading your mail? A 30 day notice would have been sent to you.

Yes you should probably call allied to find out where you are at in the garnishment proceedings.




lavendermenace
Posts: 4
Credits: 184.95

Sub: #2 I just spoke with the Default Resolution Group, who confirmed th
Wed, 04/01/2009 - 09:21

I just spoke with the Default Resolution Group, who confirmed that Allied is handling my defaulted loans. The man I spoke with said that his records show that garnishment has not begun. I haven't received anything in the mail from Allied. I was receiving letters from West Asset Management, but the loan was transferred to Allied January 24 08. My employer told me that Allied called him many times requesting my SS#, his SS#, his tax ID #, etc etc. My employer would not give him those things. I believe the last time he called, the guy from Allied said that he would send my employer the garnishment paperwork. The weird thing is that the employer who has been getting these calls is not my main employer... I only work there once a week. My full time job has not been contacted, even though I have worked there several years and have filed income taxes which state both employers addresses, phone numbers, etc.
I guess my main question is, what information should I have available when I contact Allied? What should I expect?




lavendermenace
Posts: 4
Credits: 184.95

Sub: #3 I was doing some research online and several things I've read ha
Wed, 04/01/2009 - 10:44

I was doing some research online and several things I've read have indicated that it is best not to call creditors to set up payment plans. That you should do all of it in writing. But then other people have said that CAs are notorious for not responding to letters and losing them, etc. Not sure what I should do.
If I call and set up a payment plan, should I give them bank account info over the phone? Is that an invitation for them to empty my bank account? What is the protocol here?
Thanks for your earlier reply SOAPLADY, I appreciate it.




lavendermenace
Posts: 4
Credits: 184.95

Sub: #4 Good news. I contacted Allied interstate and contrary to everyth
Wed, 04/01/2009 - 11:56

Good news. I contacted Allied interstate and contrary to everything I read, the representative I dealt with was extremely polite and non-threatening. I am working out a loan rehab progam with her. Feel much better about whole situation.




drjonah
Debt Samaritan
Posts: 244
Credits: 5087.35

Sub: #5 Allied may be a terrible CA, but their student loan division is
Wed, 04/01/2009 - 14:35

Allied may be a terrible CA, but their student loan division is very very different. CA's that handle student loans have to follow different policies




SOAPLADY


Debt Samaritan
Posts: 17181
Credits: 474368.58869987

Sub: #6 Student loan negotiation is always done over the phone...they wi
Wed, 04/01/2009 - 14:41

Student loan negotiation is always done over the phone...they will not negotiate via the mail.




Unregistered

Sub: #7 How much would my monthly payments be to Allied Interstate on a
Mon, 10/12/2009 - 18:00

How much would my monthly payments be to Allied Interstate on a $12K defaulted federal student loan? My monthly income after taxes is around $2800.




SOAPLADY


Debt Samaritan
Posts: 17181
Credits: 474368.58869987

Sub: #8 There is no set payments on student loans...when you default you
Tue, 10/13/2009 - 04:50

There is no set payments on student loans...when you default your entire balance is accelerated and becomes due in full immediately.

You might wasnt to look at rehabbing or consolidating. Read the stickies at the top of this forum.




Unregistered

Sub: #9 WV, Thanks soap lady! I was able to rehab and negotiate two m
Tue, 10/13/2009 - 15:20

WV,

Thanks soap lady! I was able to rehab and negotiate two monthly payments of $300, then my monthly payment will go down to $120. Your advice is greatly appreciated by me and everyone else who visits this forum.




Unregistered

Sub: #10 student loan
Mon, 11/02/2009 - 12:27

it seems the more you pay the amount never decreases.....




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