How to Appeal Studen Loan Garnishment
If you're having your wages or a bank account garnished because you defaulted on a student loan, you might be able to successfully appeal the garnishment by asserting that it's causing undue financial hardship. If you defaulted on federal student loans, the Department of Education can obtain an administrative wage garnishment, meaning it can garnish your wages without having to obtain a court order first. If you defaulted on a private student loan, and your wages are being garnished as a result, you can challenge your garnishment in court.
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Instructions
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Appealing Garnishment for Federal Loan
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Visit the U.S. Department of Education's website and download the Financial Disclosure Statement (See Resource 1 to download form). You will need to list your monthly expenses and your monthly, weekly and bi-weekly gross and net earnings.
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Gather your most recent paystub, your most recent W-2 and your most recent tax return. The U.S. Department of Education requires all these things in order to verify your income.
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Enclose a copy of your auto loan agreement, if you have one. Additionally, you must enclose copies of reciepts for child support payments if you pay child support.
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4
State how much you believe you can pay. The Financial Disclosure Statement form asks you to estimate the amount you're able to pay, given your monthly expenses. Once you sign and date the form, with all the necessary documents enclosed, send it to:
U.S. Department of Education
P.O. Box 617635
Chicago, IL 60661-7635
Appealing Garnishment for Private Loan
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5
Contact a representative with the private loan company that obtained a garnishment against you. Ask a representative if there's any possibilty of creating an alternative payment plan. If there isn't, you'll have to seek a stop to the garnishment in court.
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6
Speak to your work's payroll department if the private loan company is not willing to work with you regarding a payment plan. Your payroll department will have a copy of the garnishment order; the garnishment order will include details such as contact information for the levying officer and information pertaining to which court issued your granishment order.
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Contact the court responsible for issuing your garnishment order. A clerk of the court will be able to help you by explaining what response forms you will need to file to challenge your writ of garnishment.
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