“Ten Years of Garnishment Down the Drain”:
In this series of Real Life Examples, I would like to highlight a potential client who came to us after ten years of wage garnishment at $400 a month. They were upset that the loan balance had not gone down at all, but rather actually went up. To top if off this client works for the local school system and would be eligible for Public Service Loan Forgiveness (PSLF) had they not been in garnishment.
We put together a plan to cure the default, put them on the best income based plan for their family with an estimated payment of $167-$324 depending upon how they file their taxes and how many children the borrower claims on his tax return as dependents. And they will be enrolled in the PSLF program which will allow for a full discharge of any loan balance including unpaid and accruing interest after ten years.