General Revenue Corporation, Sallie Mae, United Student Aid Funds, Inc. Wage Garnishment after making the required payments on time Cincinnati, Ohio
I set up a 6 month payment program with General Revenue Corporation at which time I stated that our family was experiencing financial hardship as in we have lost over 75% of our families income in the last two years.
Now, General Revenue Corporation has garnished my husbands wages, who is the only working individual in our home for 15% of each net paycheck which is a total of 30% per month. This amount is a larger percentage then if my husband had to pay for child support in the State of Nevada.
When I called General Revenue Corporation to speak with them, I was then told it was 9 months payments not 6 months. I had the payments paid directly from my bank account so that General Revenue Corporation did not have to wait for a check.
What my question is in reading a rebuttal from a previous employee, is what federal statue governs General Revenue Corporation the ability to garnish 15% of each of my husbands net paychecks?
Yes, also I do understand that my husband signed a note to pay back this money. But, we could not foresee that I would be unable to find a job for the last two years as our state as a 13.5% unemployment rate.
Due to General Revenue Corporation garnishing my husbands wages triple what the payment was to them we are facing the possibility of losing our home that we have owned for the past twenty years and raised our three children in.
Nothing like kicking a hard working american family while we are down.
1 Updates & Rebuttals
Ladyirish
Elmira,New York,
U.S.A.
Higher Education Act
#2UPDATE EX-employee responds
Mon, January 25, 2010
The Higher Education Act authorizes the Department of Education's guaranty agencies (General Revenue) to garnish up to 15% of disposable earnings (the amount left after legally required deductions are made). Fair or not, they're completely within their rights.
Three things you can do:
1) Request a garnishment hearing: This can occur even after the garnishment has been placed, and can be done in writing, in person or over the phone. (I would recommend a phone hearing.) Explain your financial situation to the judge, but also offer a consistant repayment plan you can manage in place of the garnishment.
2) Attempt to finances your loans through the William D. Ford program. This may not be possible with the way the economy is (fewer consolidation opportunities are available), and it won't stop your garnishment until the consolidation has funded, but A) It WILL lift the garnishment within 90 days (max); B) It will set you up on an income-contingent repayment plan; C) It will remove the default loan(s) from your credit report within six months.
3) Continue with the nine-month program, if at all possible. This will have a similar effect to the William D. Ford program, lifting the garnishment and removing the default status from your credit report.
Remember, General Revenue doesn't have to work with you. Legally, your husband's loans are due in full ... TODAY. (Actually, the day they defaulted.) While frustrating frightening, you have to look at the situation for what it is. What you need (financial hardship relief), isn't a luxury you're going to get, and is something that General Revenue isn't allowed (by original guarantor of the loan) to even consider.