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Dear Customer, thank you for choosing Just Answer. I am sorry to learn of this unfortunate situation. While I may need some additional information to fully answer your question, I can provide you with some general information regarding these types of situations. The lender (either a school or a private lender) does not have to negotiate with a debt rehabilitation program as the lender is entitled to payment under the terms of the original contract (this is usually why students such as yourself get garnishments or other enforcement actions even though they have just entered repayment programs). HOWEVER, most schools will work with a rehabilitation program and with the student in order to ensure that they receive some payment, or some guarantee of payment going forward in a reasonable manner). Remember, both you and the debt rehabilitation program are working to offset the lender's rights to a guaranteed cut of your income.
If you are in a loan consolidation program however, where your loan is actually being paid off by another lender, and the original school or lender is being paid off, you will no longer be facing this type of garnishment. Check out the US Dept. of Education's website regarding student loans and repayment options for both federal programs, and information about private programs to get a better understanding of your rights and ways to avoid this type of future conduct.
I hope the above is helpful. If it does not sound like it matches your situation, please give me a little more information about your lender and the rehabilitation program and I will try to give you a more specific answer. If you have any questions, please ask. Best regards, Bill
Are you in a "rehabilitation program" or a "consolidation program" for your loan?
Has your rehabilitation company entered into a contract with the lender (the community college)?
Unfortunately, unless you actually have a contract between yourself and the community college (through the rehabilitation program) you will still be subject to collection activities, such as wage garnishment, by the community college. Many rehabilitation programs are helpful and can assist you in getting the collections actions stopped so that you can enter a traditional repayment plan. If you have difficulty I would recommend contacting the US Dept. of Ed.
Unfortunately, with student loans the lender is not required to go through the normal steps to get a judgment and pursue the same collections methods that other creditors do, this does leave students at a severe disadvantage to other debtors.