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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 118664
Experience:  Attorney experienced in commercial litigation.
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I owe 44k for my student loans. I sent in paperwork and they

Customer Question

Good morning,
JA: Hello. How can I help?
Customer: So I owe 44k for my student loans. I sent in paperwork and they sold it and said I didn't add a letter to it so was to late and added an additional 10k which I didn't borrow. bringing it to 55k I was paying monthly when they wanted to get into my bank account. I refused and continued to pay . They said I was in default I said how can I be in default if im paying you monthly. Again they wanted my bank info to take money out that way. Instead they decided to garnish my wages and are taking out money every two weeks from my work checks based on gross and not after taxes. So depending upon how much I make every two weeks they garnish 15% of disposable income until loan is fully payed. PHEAA is the lender
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: ny
JA: Has anything been filed or reported?
Customer: on their behalf yes not mine
JA: Anything else you want the lawyer to know before I connect you?
Customer: my company is in chicago i work in ny the lender is PA ok
Submitted: 1 month ago.
Category: Consumer Protection Law
Expert:  Maverick replied 1 month ago.

Welcome to Just Answer! My name is***** give me a few minutes to review your inquiry. Thank you for your patience.

Expert:  Maverick replied 1 month ago.

Please state the specific legal question you want us to answer.

Customer: replied 1 month ago.
Ny
Expert:  Maverick replied 1 month ago.

Please state the specific legal question you want answered.

Also, I need to know more about why they are saying you did not add a letter. What is your understanding of what was supposed to be the purpose of that letter and why would that allegedly cause the balance to increase by 10K?

Customer: replied 1 month ago.
Because they sold the loan. No idea why the letter was pertinent. I provided the information and application they wanted.
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am a DIFFERENT CONTRIBUTOR as your previous contributor had to leave.

I read everything above, but I still have no idea what your question is for us. Can you please ask your specific question for us?

Customer: replied 1 month ago.
Student loans
Customer: replied 1 month ago.
They add 10k
Customer: replied 1 month ago.
Hich I didnt didn't borrow
Customer: replied 1 month ago.
Which^
Customer: replied 1 month ago.
Garnished wages when I was paying them monthly
Customer: replied 1 month ago.
Seems illegal added fees too
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your reply.

They can legally add in interest and legal fees for collection of a loan in default. So you need to get an itemized statement from them to determine what the $10K addition was for to determine whether it was legal or not legal. They must provide an itemized statement to you and if they refuse, then you can actually sue them for not doing so and claiming the 10K was a breach of the contract.

As far as garnishing your wages, under the law, absent written agreement with them to not garnish, once your loan is in default the lender legally can garnish your wages even if you are making monthly payments and if they are garnishing you, then stop the monthly payments, since you have no obligation to make both. Let them take their 15% and get only that and no monthly payment.

Until you get the itemized statement on your account from them, there is no way to know whether or not they are charging you the proper amount on the loan and once you do get it, if they are wrong you would need to prove to them where they are wrong and if they refuse to correct it then you can sue them.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Customer: replied 1 month ago.
OK great thank you for feedback also they are garnishing my wages every two weeks so twice a month that they take out . It can be 500 + and change them 300 +and change depending upon how much I make based on how much I work. As I'm a free lancer . Also this is based in wages where taxes aren't taken out yet.
Customer: replied 1 month ago.
Twice a month seem ridiculous but based on the nature of the document they provided do my employer they said to garnish until the full 44 k is paid. After I realized they were doing that I stopped paying them and they still want acesse to my bank account which I refused to give.
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your reply.

Unfortunately, when you default on a student loan, these people are ruthless because they do not follow the same rules as regular debt collectors, student loans cannot be discharged in bankruptcy and they are backed by the government. Now, they are not supposed to garnish you except for your "disposable income" meaning after taxes and standard deductions, so you need to inform your employer that if they are taking out before taxes, you would have grounds to sue the lender for improper garnishment since they are not taking into account taxes and garnishing disposable income.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Customer: replied 1 month ago.
Ok ty
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your reply.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Customer: replied 1 month ago.
How am I defaulting when I'm was paying monthly . They wanted access to my bank account because I chose not to allow this they said I was in default. I stopped paying after they garnished what was I going to do give them acces or charge me 3 times a month?!?!
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your reply.

They will not garnish you unless you were initially delinquent on the loan. You had to be delinquent when you entered into the payment agreement and that means you still were in default on the loan. You should not give them access to your bank account and since they are garnishing you already, that is all you need to pay them.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.