How Can I Stop My Student Loan Garnishment?
Posted August 20, 2014 2:00 p.m. EDT
Updated November 8, 2014 6:45 p.m. EST
WRAL Reader Question
Didn't pay on my student loans. Garnishment began 1/1/2014. Recently resigned from my job and began taking college courses at a state university. I am currently applying for a new job.
Is there a way I can stop future garnishments and erase the garnishment from my credit history? If so, what are the steps?
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I'm not sure if these were private or federal student loans. If they are private student loans then you could stop the garnishment by either paying off the loans or negotiating an alternate repayment relationship with the lender.
If these are federal student loans the easiest and cheapest way to stop a garnishment is to consolidate your loans into a new loan. There is no cost to do this. The best part is you can then ask for an income based repayment plan and depending on your income your payment could be as little as $0 per month. Since it is a new consolidated loan the defaulted loans would be reported as paid off.
You can learn all about this approach here.
None of this changes the reality of your past delinquent payment history. It is what it is and you credit report should reflect your actual payment history, good or bad.
Before I go, here are to tackle your issue.
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