Reply #14: Haven't been garnished, but

[JoDog]

my sister is, and I declared bankruptcy earlier this year.

It is a big blow to your credit rating that lasts until years after the garnishment ends (basically, it can take 7 to 10 years for an action to fall off your credit report). While you are not "looking" to replace a car or move in the next 10 years, well, life has a way of demolishing the best laid plans.

Figure out what (if anything) you can pay a month, call up the Dept. of Ed., and make an offer to pay that amount for the time being. If you are unemployed or experiencing a health of family hardship that effects your ability to pay, you need to let them know that. Also, you have up to 36 months forbearance you can use if you haven't already. Forbearance means that you cannot pay or doing so would inflict hardship, and you get to take a break from making payments. Interest still accrues during the forbearance period.

The US Dept. of Ed tends to try to work with people more than private banks, so if you haven't talked to them, you need to immediately.

In garnishment, they will take the set percentage of your paycheck. Since you owe to the government, they will also seize tax refunds. If the percentage is less than what your payment would be, then you might consider taking the garnishment for now and making other arrangements when things improve.

You will only be garnished until the debt is paid off.