getting out of wage garnishment

[really_bad_credit]

I have a defaulted federal student loan that is being repaid by wage garnishment. I want to have the garnishment stopped and have my loan rehabilitated, however, I have fallen thru with rehab once before (thus the garnishment). My situation is this, I have recently had a 4th child and will be facing an increase in childcare expenses when I go back to work. I believe that I can use this to get the amount of the garnishment reduced. What I would like to know is can this change in my financial condition be used to get into the Department of Education's loan rehab program (I was in the William D. Ford rehab program before)?

I have been successful in getting many of the ding's off my credit, however, the big "BEING REPAID BY WAGE GARNISHMENT" sticks out like a sore thumb. I don't owe much, about $2,900.00, but I don't have any reserve funds to pay it off.

Thanks for your help!

[stellblu]

Call the Dept. of Education. They will either redirect you back to Direct Loans (William D. Ford) or allow you to repay directly to them using an income contingent repayment plan. Student loans are a b*tch, but in their favor, I gotta say they're more interested in getting paid eventually than getting full payment immediately :P

When I consolidated, they made us file a budget of sorts, listing all of our expenses (ALL, including food, gas, debt, etc...not just "debt" ), and based on an income of 76k/year back then, we make payments of $50.51, on a tiny $4410 loan. It's down to like, $1400 now, but I pay off chunks of it when I get my tax returns.

We had defaulted on the original loans, and again after it was sent to the guarantor, and they still allowed the consolidation, so I'd give it a shot :) If nothing else, they'll tell you what you *can* do.

However....I am not sure if you are allowed to consolidate more than once. Is the garnishment occuring on a consolidated loan, or is it being spread out to the original loans? Either way, your new expenses should at least decrease the amount being garnished. They will not allow a second rehab, so the negatives will not be removed, but if cash flow to pay it off is the biggest concern (and the garnishment notation) consolidation will at least clean that up a bit.