Tag Archives: federal
Student Loans Consolidation – Easy Debts Payments
Are you a student looking for ways to bring your educational student debts under control, the best way is to go for student consolidation loans? Using this way is the best and easier way that a student that has huge student debt can quickly ease out and enjoy is future.
Student debt consolidation is not rocket science. It is the only practical and convenience way to all student debt consolidation stress like payments delay, fund mismanaged, payments default and others.
Student consolidation will surely help one to start taking debt control and be relief.
LOANS REPAYMENT
Student loan consolidation has its own benefit that is favorable to all students. The first benefit is that your interest rate reduces to half after the debt consolidation.
This happen as a result of the average weighted interest rate. As a student you take loans when you are still in school and you never notice the interest charges n the money loaned.
His also happen with those that have credit card loans.
The interest on the loan keeps on piling on the principal and become a big stress by the time you are on your own.
After Student consolidation of loans, the amount will average the interest rate which is now calculated after all interest rates.
The interest is divided and the fixed installments will be decided, this amount must be paid every month.
You will make a huge saving on your earlier payments and also will pay less in all terms.
Another benefit of students loans consolidation, your installment monthly payments will become less.
Paying your installment in a wrong way will surely make you start living like a pauper, begging before you can afford to eat. You must try and revisit and revise your loan budget every time until you finish paying. After your student loan is consolidated, your principal amount will be spread over a period of 20 to 30, which will tend to reduce your monthly installment.
The debt consolidation company is mandated to bring your monthly installment within your reach; this will make you easily pay off your monthly installment every month.
Every student still under student loan debt always dream of qualifying for the student federal loan consolidation. The student federal loan consolidation has a huge advantage over any other student loans consolidation. When a student qualify for the federal loan consolidation, he or she gets to benefit from prepayments without penalties, repayment plans will be flexible, no credit checks, duration of loan will be longer, no charge fee and a student need not send proof of any income before loan can be approved.
Student loans consolidation gives quick relief from loans accumulated during study.
Always try to first get student federal loan consolidation if possible due to its many advantages.
In any case, student debt consolidation is beneficial for all students under any form of student loans debt consolidation.
About Student Loan Garnishment
What is Administrative Wage Garnishment (AWG)?
Administrative wage garnishment (A.W.G) is the process by which a Federal agency (Dept. of Education) or a third-party given authority by a Federal agency (the collection agencies) may, without first obtaining a court order, order an employer to withhold amounts from the debtors wages to satisfy a delinquent debt. Dept. of Education considers AWG to be a tool of last resort. Before using AWG, Dept of Education expect its representatives to have attempted to resolve the debt through voluntary means: attempting to secure the balance in full, an approved settlement, or installment payments that are “reasonable and affordable” based on the debtors individual financial circumstances. Some within the industry may consider this the guaranteed recovery method.
Representatives must consider whether the debtor presents a legitimate defense to the repayment of the debt(s), and whether AWG may be ineffective because the debtor is self-employed or a Federal employee, in which cases the collection agency will recommend litigation or a salary offset.
What is the purpose of AWG?
The purpose of an AWG is to recover the amounts for the Federal taxpayers without the cost of litigation fees. It was created to basically recover the unpaid debts arising from federally supported activities, which include student financial assistance.
What are the debtors rights in the AWG process?
-To be sent a notice 30 days prior to ED ordering the wage garnishment that explains EDs intention to garnish, the nature and amount of the debt obligation, and the opportunity to inspect and copy records relating to the debt, to object to garnishment to collect the debt, and to avoid garnishment by voluntary repayment on terms agreeable to ED.
-To have the opportunity to inspect and copy Department records pertaining to the debt. (A copy of the original signature left on the promissory note and a payment history)
-An opportunity to present evidence and argument and on any objection by the debtor to the existence, amount, or enforceability of the debt, and to obtain a ruling on the objection.
-An opportunity to prove that the garnishment of 15% of the debtors disposable pay would produce an extreme financial hardship.
-Having garnishment action withheld by filing a timely request for a hearing, until the hearing is completed and an adverse decision issued; Not to be discharged from employment, refused employment, or subject to disciplinary action due to the garnishment, and to seek redress in federal or state court if such action occurs; and Not to have any information provided to the employer but that which is necessary for the employer to comply with the withholding order.
-An opportunity for a hearing to present and obtain a ruling on any objection that garnishment cannot be used at this time because the debtor is now employed for fewer than 12 months after involuntary separation from the most recent prior employment.