only 1 asked:
Will a “Debt Consolidation ” company also help with Ed fund student loans that are now defaulted?
I am considering looking into debt consolidation. My student loans are being garnished by ed fund from my wages. they have also just taken my Ca state income tax check. If I do debt consolidation, will they be able to stop my wages from being garnished?
Will a “Debt Consolidation ” company also help with Ed fund student loans that are now defaulted?
I am considering looking into debt consolidation. My student loans are being garnished by ed fund from my wages. they have also just taken my Ca state income tax check. If I do debt consolidation, will they be able to stop my wages from being garnished?
Most likely not. Student loans are one of the few things that get paid back no matter what happens to you. About the only way to get out of repaying student loans is to die.
If they are already garnishing your wages, the lender will not stop until all your arrearage has been repaid and a debt consolidation company isn’t likely to be able to arrange that.
Be very careful and only use a company that you trust and know something about (someone else you know has used them with good success). Debt consolidation schemes are quickly becoming the biggest scams in the financial industry taking your money and leaving you worse off than you were in the first place.
Left by Tomk on April 1st, 2010
No, it is very hard to get student loans discharged and no debt consolidation company will touch them. Also, most debt consolidation companies end up doing more damage then good. What I would suggest to you if you truly can not pay your loans to go into bankruptcy this way hopefully it will free up enough money so that you can start making payments on your student loans again and get them out of default. Trust me, I tried to go through a debt consolidation company before filling for bankruptcy.
Left by andy on April 4th, 2010