I was now a veteran Borrower counselor (collector), and it was even appropriate to attach the word “senior” to my job title. Being a collector for such a long time numbed my heart. They say that the collection industry can create a monster out of almost every person. A Borrower counselor says things like, “Criers are payers” and “We can’t squeeze blood out of a rock, but we can crush it”. In the call center I will pick dirt out of my nails, as I listen to people cry over their predicaments. Some will say that it is just the nature of our business, but I noticed my character slowly mutating. As a senior borrower counselor my heart had turned to stone. Looking back now, I was Department of Education’s rabid German Sheppard.

Every day is an interesting day for me, speaking to people with different problems in their lives. One of today’s tasks was to contact a person working for a very large company. I had been working this account for about 45 days now. Mrs. Jane Garnishin was a call center rep, the cuddly and harmless ones. At first, my intention was to contact her prior to the wage-attachment (garnishment) but she was very difficult to reach. She must have worked with loads of people because I had a tough time getting in touch with her. I am not even sure if she received my messages, but I was totally fed up with chasing this damsel.

After leaving 5 messages at home, 2 messages at her place of employment, and sending out 3 auto generated letters to the home mailing address we had on file, I was ready to initiate the garnishment. Please let me explain a little about the letters

• The 1st of the set is the initial demand letter, which is a letter letting them know that our company has been retained by the DOE, and to inform borrowers that their loan balances are legally due in full . (along with basic account information)
  
• The 2nd of the set, is a letter informing borrowers that a settlement compromise is available.
• The 3rd and final letter of this set, is a notification that the Rehabilitation payment plan is available to start repayment on this obligation.

All letters are required to be gaped 14 days apart. Making the calls to Mrs. Garnishin and leaving her messages came with ease. The most time consuming part of submitting a garnishment would be completing the letter series. I would not able to kick-off the garnishment without all these letters being sent. If she were to have returned her mail, I would’ve needed to update the address and restart this 45 day cycle over again. These Federal garnishment requirements are extremely strict and garnishments cannot be initiated without the completion of all of these strict requirements. In Mrs. Jane Garnishin‘s case her calls, messages, and the letters have now been completed. The time for Jane losing control of her financial situation was nearing, and she would be trapped like a moth in a shower. Any time a garnishment is kicked-off it would usually continue until the total remaining balance has been paid off. Remember, student loans can range between 4 figures to even 6 figures ($1000-$100,000+).

If the word “forever” could be measured by a life-span, people are forever getting killed financially. I knew the strain it would cause people, and I felt that it was my mission to notify these people of their situation. You see, these are grown adults, and they did not need or want me to tell them what to do. As a messenger I took it as my task to give the necessary heads-up. As for Mrs. Jane Garnishin, I called and called and waited and waited but she never called back. Since all of my work here was done and I was not able to contact Mrs. Jane Garnishin, I ended up sentencing her to financial death row. I submitted her file to our garnishment department and that was the end.

Almost 1 year later Mrs. Jane Garnishin called back and I placed her on hold, it was now her time to become patient and wait. I had an idea why she called; she must have been fed up with having her pay checks tampered with. I noticed that her $600 monthly garnishment had jumped up to $725 for the last few months. These garnishments are set at a percentile rate based off of her disposable-pay. I came to a realization that she probably received a raise or promotion at work. Having a garnishment on file and working towards receiving a raise at work, is like being an injured trout swimming upstream. She probably wanted to enjoy all the fruits of her labor, and her raise is what possibly triggered the call back.

After familiarizing myself with her account I was ready to talk and took her off hold. When I began my conversation with Mrs. Jane Garnishin I gave her a shred of hope, letting her know that there is a possibility of stopping the garnishment. I laid out solutions for Mrs. Jane Garnishin and she refused to take advantage of her options. She was unable to do a lump sum pay off, and she started getting ill-tempered. Obviously there weren’t too many options she could take advantage of with a $725 monthly garnishment. Since she refused I slapped her with an update, letting her know that the garnishment payments have only been applied to her outstanding interest and her collection costs. Emotionally she was like an uncontrollable roller coaster. She felt hopeful, then angry, and then she became so angry to a point where she started to cry. Towards the end of the conversation she started using obscene language and she eventually hung up out of frustration.

It is interesting being on my side of the phone. Options are limited when working with garnishees, but there is always a solution for everything. There is a remedy rarely offered for this financial catastrophe, a cure that is available ONLY upon request. If the garnishment created an undue financial hardship, Mrs. Garnishin would’ve had the option for an untimely hearing request. If Mrs. Jane Garnishin would have talked to someone more knowledgeable about this, maybe a legal counsel, or if she invested some time into reading some literature, then she too would have known this information. I occasionally call her every other quarter but after 2 ½ years with 2 promotions, throwing over $800 a month away in garnishment payments, Mrs. Jane Garnishin still has not returned my calls.

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

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Why should you listen to me?

Why am I releasing this information?

When someone falls behind on student loan payments, first things that many  student loan borrowers ask are… What are my options? How can I make a payment?  How can I defer my payments? How can I make the least amount of payment? And etc… Well today I will go over the LEAST talked about topic.  The topic that many borrower counselors or even debt settlement agencies will not discuss.  Why you should settle out on your defaulted federal student loan.  I will pull back the curtains and go over all of the details about settlements on defaulted federal student loans. And why you should settle out… if it is possible.

“Debt and Lies are generally MIXED together” – Francois Rabelais

Why should I settle my Defaulted Student Loans?

1. Settlement is ONLY available while your defaulted student loan is in collections
2. Fix Credit – a good credit score is now used for EVERYTHING.  Buying a house, buying a new car, car insurance, health insurance, a place to rent and etc.
3. Job Placement - With the economy the way it is…. if you are looking for a new job… your employer is going to weigh in your credit score, do you want your future to be left up to chance?
4. STOP wage garnishment – If you have received a letter stating that you will be garnished because of your defaulted federal student loan.  If you are in negotiations for a settlement… this will stop the garnishment temporarily.  If you settle out completely… it will be stopped permanently.
5. STOP Tax Offsets - You can get your tax return back if you negotiate  a settlement prior to you filing your tax return.  This can sometimes offset “what you pay” meaning – if your accountant or CPA says your tax return is $3,200 and you negotiated a settlement for $2,500.  You are UP $700.
6. Go Back to School or CO-Sign: If you are looking to go back to school you will not be able to access any other financial assistance OR if you are looking to co-sign for your kids… you will be denied!

Watch this video NOW!

***Curious about the PROS and CONS of each option?***

Obviously the purpose of a settlement is so you can get your defaulted federal student loans paid off, without having to pay the entire thing. So basically, it’s a partial pay-off. As mentioned everywhere there are 3 settlement options available to you as soon as your federal student loans fall into default.

Option #1 Principle and Interest
In my opinion there is absolutely NO BENEFIT going with this option. As a matter of fact, I think this option is ridiculously stupid and it’s only available for collectors to take advantage of people that are unaware of their options to have them pay MORE than what they really need to pay!

Option #2 Principle and 50% interest
This option for settlement works especially well for individuals who racked up a great deal of interest. Regardless of how much you owe in interest, this option will cut your interest in half. Basically meaning if you racked up 10 years worth of interest, this option will allow you to pay-off your loan(s) by paying back your principle and 5 years worth of interest.

Option #3 90% of Principle and Interest
This last option allows you to pay back 90% of your loan’s combined principle and interest otherwise known as a 10% discount. This option works especially well for individuals who don’t owe a significant amount of interest. For example if have a defaulted federal student loan and you owed a $25,000 principle plus $2,000 in interest. That gives you a combined principle and interest of $27,000 ($25,000+$2,000). Now take 10% off of $27,000 and that gives you a settlement pay-off in the amount of $24,300, which is $700 LESS than the principle!

MR. KAY’S NOTES:  If you have a 401(k), 403(b), TSA, IRA, HELOC (Home Equity Line of Credit), a 2nd mortgage, Life Insurance (w/ Cash Value), Credit Cards, mutual funds, and etc… you should leverage those accounts to pay down your liabilities..

If you have any further question – Leave a comment below.

Sincerely,

Mr. Kay Production Manager

Rogue Student Loan Collector

The Confessions of a Student Loan Collectors – Visit: www.FreeStudentLoanStuff.com to get the most shocking truth about defaulted student loans.

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Why should you listen to me?

Why am I releasing this information?

What is a Wage Garnishment for Defaulted Federal Student loans?

Federal student loan garnishments is formally known as “Administrative Wage Garnishment,” which authorizes the Department of Education to deducted 15% of your disposable income, directly from your employer, without going to court, and without your permission.

The Department of Education should notify you in writing 30 days before the garnishment deductions begin to take place. This letter is often referred to as the “Notice Prior to Wage Withholding,” and has a 30 day expiration from when it was sent. Included with the letter, they give you the opportunity to request a hearing (either to dispute the existence or amount of the debt or to prove financial hardship) along with a written financial statement. The garnishment can’t go forward before your hearing is reviewed if you’ve responded well before the 30 day expiration mark. If you request a hearing after your 30 days has expired, the garnishment process will begin and it will be very difficult to to stop it.

Other important challenges for hearings include:

* You have repaid the loan.
* It is not your loan or there is some other reason why you do not owe
the money.
* You have already entered into a repayment agreement and have already
been making payments.
* You have filed for bankruptcy and the case is still open or the loan was
discharged in bankruptcy.
* The school failed to pay you an owed refund.
* The borrower is deceased.
* The loan is not enforceable, for example because of forgery of fraud
* You are eligible for a closed school or false certification discharge.

Find out the TRUTH behind federal student loan wage garnishments!
Where is your money going!?
Don’t get rudely surprised later! Watch the video below to find out NOW!

Learn more on how to conquer defaulted federal student loans… and STOP a federal student loan garnishment dead in its track!

visit: www.StudentLoanBluePrint.com

How to STOP a defaulted student loan wage garnishment…

I made a video on why Department of Education is running a dog and pony show when you fall behind on your student loan…

Learn HOW to STOP a wage garnishment… watch the video below.

Mr. K
Rogue Student Loan Collector