Question: can anyone point me to a refrence or other referral on your rights after you are garnished for a defaulted student loan? I was suffering extreme hardship and my student loans defaulted I was able to contact dept of ed and perkins loans and have made repayment agreements with them which i am keeping so that i can rehab..I had attempted to contact the student aid commission for repayment terms so all my loans would be rehab’d at same time and could be consolidated. However believe it or not it is not easy to track your loans or get info on them with the student aid commission by the time the guy assigned to my case called me back they were already garnishing my wages..and now he says I have to send a voluntary payment of 300 a month in addition to the 300 a month they are already taking to be eligible for rehab..seems excessive on what i believe is a max 15000 loan..not sure because although i have faxed a request for an accounting of the loans they hold and have verbally requested it by phone they still have not sent me any info. any help or direction would be very appreciated

Answer: There is some potential for that, as the number of people buried under huge student loan debts increases. We’re presently in a fake-it stage, where Congress hopes that people will make the transition to quietly accepting a lifetime debt for student loans. Unfortunately, the student loan debt comes at the expense of being able to purchase a house, car, ordinary consumer stuff, the life that a person might have expected. The loans have always been a way of letting us pay for today’s expenses by drawing upon a hoped-for future income. Even during the boom times of the 1990s, the future income prospects (and the concomitant amount of credit offered to new graduates) were not keeping pace with today’s expenses for a good number of people. An economic downturn will almost surely increase the number of people in this situation. At some point, it may develop that our 1990s assumptions about higher education and reliably higher income may have been overly optimistic — so much so that the system will demand reconfiguration. It’s been a while so this may be the wrong number for the wrong problem but have you tried 1-800-233-0557 and ask for the FEDAID number? The number I quoted is SLSC & at one time they had a number where you could locate information on all your loans.

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