Student Loan Disputes

Before a Debt Collector can collect a default student loan, you can request and they must offer you help in paying the debt.

You have the right to:

Loan Rehabilitation

• A “reasonable and affordable” payment over 9-12 consecutive months based on your documented ability to pay, not an amount the collector tells you to pay.
• A written agreement confirming the payment terms and advising you of your rights.

Notice Prior to Wage Garnishment

Federal law only permits wage garnishment to collect a defaulted student debt if:

• You get written mailed notice a minimum of 30 days prior to any garnishment proceedings, stating the intent to garnish, amount of the debt, percentage to be collected from wages, and your rights under the law
• Opportunity to inspect and copy records relating to your debt
• Opportunity to enter into a written agreement to repay your debt