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Garnishment and teaching certificate in georgia?


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Please help...I just started dealing with this situation last week and I'm so worried I'm sick.

I have a $130,000 direct consolidated loan that I defaulted on. It went to delta management collection agency four months ago. The agent I spoke with said that it will be $820 a month for nine months to rehabilitate the loan. He said this was the lowest option because of the huge of the loan and the interest. I can pay it, but it's going to be a miserable 9 months.

He said the garinshment will go through on the 18th if I don't pay something now, but there's no way I can get that kind of money until the first (paid monthly). Is he just intimidating me?

If the garnishment goes through will i lose my teaching liscense in the Sate of Georgia? I haven't gotten a garnishment letter yet.

There's no way I can consolidate because it was a direct consolidation loan I defaulted against, right?

I would appreciate any help. I just hate myself for letting this happen!

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You may lose your teaching license...however, I'd check with a lawyer to be sure.

It would be the height of stupidity - since losing your license means no work - which means no income...

Have you thought about forbearance/deferment from the Dept of Education to stop the garnishment from happening?

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Hi Kwiris-

I have worked in a collection agency for student loans and have seen your situation before. I know the little tricks to get around some of these sticky situations.

The first thing to know is that there are many state laws that regulate consequences of defaulted loans. Some states are mnore strict than others, so you would need to look into the state laws of Georgia to determine if your teaching license can be suspended.

As far as the garnishment goes, I can tell you that if they are giving you a date then it is probably the end of the 30 day notice which is required before a garnishment can occur. So, I would bet that the date is real and you must make a payment by that date to prevent the garnishment. However, you may not need to make a full payment to prevent the garnishment. Many clients require there to be no voluntary payments within the last "x" days (30, 45, etc .. depends on the guarantor). What this means is that if you make any voluntary payment, it will stop the garnishment process for now and the process would start from the beginning. If at all possible make it a large enough payment that it cannot be ignored. I would say $150-$200 should be fine. I have seen where people try to send in a dollar or two at which point the collection agency can request to push the garnishment through with the guarantor's approval. By making this payment, even though it is not a qualifying payment for the rehab program, it will buy valuable time to come up with a full payment.

To be honest, if you don't think you can afford the rehab payments, you may want to see if you can reconsolidate your loan with direct loans. Their income contingent program should be more affordable for you (15% of you income).

Hope this helps!

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