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:
- 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