Get Out of Debt Guy

A Debt Collector is Garnishing Our Wages Over a Student Loan

Posted January 5, 2015

Dear Steve,

My husband received a call from the EOSCAA in Nov, 2013 that he owed $56000 on a student loan. Between Nov 2013 and March 2014 we tried to get to the bottom of the situation. In March the EOS CAA began garnishing his wages, twice a month at a rate of near $1000. I filled out and mailed in a hardship package to the Dept of Ed containing every bill we pay, 2013 tax forms and a detailed financial inventory showing what we bring in and what is going out and it clearly showed a deficit. We were denied because according to their calculations we should be experiencing a $2000 a month profit making the $1000 a month garnishment more than affordable.

We have never received correspondence from the Dept of Ed. To this day we have never received although requested, a copy of the promissory note which we were told was done electronically. What we were told was that if our son took out this loan, even if he didn't realize it was a parent loan, he would be prosecuted and serve jail time.

…Click here to read the rest of this question and my answer.

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Steve Rhode
WRAL Get Out of Debt Guy

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About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.