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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?




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.

Sub: #1 posted on Wed, 04/01/2009 - 21:35

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17209 | Credits: 4746.13)

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?

Sub: #2 posted on Wed, 04/01/2009 - 21:51

lavendermenace lavendermenace

(Posts: 4 | Credits: 1.85)

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.

Sub: #3 posted on Wed, 04/01/2009 - 23:14

lavendermenace lavendermenace

(Posts: 4 | Credits: 1.85)

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.

Sub: #4 posted on Thu, 04/02/2009 - 00:26

lavendermenace lavendermenace

(Posts: 4 | Credits: 1.85)

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

Sub: #5 posted on Thu, 04/02/2009 - 03:05

drjonah drjonah

(Posts: 244 | Credits: 50.87)

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

Sub: #6 posted on Thu, 04/02/2009 - 03:11

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17209 | Credits: 4746.13)

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.

Sub: #7 posted on Tue, 10/13/2009 - 06:30

Unregistered


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.

Sub: #8 posted on Tue, 10/13/2009 - 17:20

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17209 | Credits: 4746.13)

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.

Sub: #9 posted on Wed, 10/14/2009 - 03:50

Unregistered


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

Sub: #10 posted on Tue, 11/03/2009 - 01:57

Unregistered


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