EdFinancial - Loan delinquent and at risk of default.
Posted by Alexxx0207@reddit | studentloandefaulters | View on Reddit | 21 comments
So I received an email that my EdFinancial loan is delinquent and at risk of default. I haven’t been paying on it and have been ignoring their emails- until now. This email said that they could garnish wages or take tax returns if I don’t pay. I am I stay at home mom, I don’t work, my husband and I do joint taxes. My question is, can they garnish my husband’s wages or take his/our tax return? Also, today I registered my account online to see how much I owed. I planned on paying like $50 bucks or something just to start paying something but I would have to put my bank information in. This scares me because I don’t want them having access and maybe garnish from my account? I do have “income” go into that account in the form of monthly child support from a previous relationship and then a monthly Venmo from my husband for daycare costs. Could they access my account and draw from it? Thank you so much. I hope to receive some help here.
Sasahami@reddit
They must have went heavy on these emails today. I received the same one but received letters last week mine are deferred til 2026 because I am in school. So I was confused. Normally I would say call but that's next to impossible these days with there being no staff. So I'd say do what others suggested and pay a little bit if you can
Alexxx0207@reddit (OP)
I was able to get in touch with them today actually and got it into forbearance for six months while I figure stuff out. Yeah that’s another thing, so this loan is from grad school 10 years ago but I just graduated from another grad program this past November (I used my husbands GI Bill for that) so I guess it’s my fault for not letting them know I’ve been in school. 🤦🏻♀️
Sasahami@reddit
Interesting, my schools have always informed them but maybe that's what happening with mine. Wonder if they missed reporting somewhere. Guess I'll give them a call just in case
Euphoric-Knowledge-4@reddit
How did you contact them? It’s been impossible for me and I’m still in school too
Alexxx0207@reddit (OP)
If you’re able to, do a call back. That’s what I did and they called me back in about an hour.
Ok_Pipe9224@reddit
did you get your points back?
MediocrePineapple857@reddit
Hey, I get how stressful this can be. Generally, they can't garnish your husband's wages or tax return since you're a stay at home mom, but if you have joint taxes or accounts, they might try to go after the shared money, so it’s good to be cautious. As for your bank account, it's better to start with a small payment without giving them full access, or speak directly with the loan servicer to set up a payment plan that keeps your info safe. I found this Comparison Chart of Student Loans Companies helpful.
CharacterFuzzy3398@reddit
man i feel u on this... been dodging edfinancial calls for like 2 years now lol. my loans went into default last year and my credit is absolute garbage, but somehow im still breathing. just take it one day at a time and remember ur not alone in this mess. btw, i found this comparison chart of student loans companies pretty helpful when i was trying to figure out my options.
Dry-Release-1797@reddit
They do have to have a judgment in order to garnish, meaning serving you with court docs, same as when you went to court for custody. An email does not suffice. It will have to default for awhile before they actually bring suit too. So don't be scared in the future if you see yourself in this situation in the future, you have time before you get sued.
Additional-Ad-9088@reddit
With the chaos in the DoEd and the rest of government, low morale and fear in the civil service; consolidation would seem to be a rash decision until the situation becomes clearer. Imagine what will happen during the coming recession and government dysfunction with changes to policy or laws. That there will be changes coming that may (note the word may) be foreclosed by a consolidation would argue for waiting.
dllib502@reddit
What has caused you default on you loan debt? If you are out of work or have had you income reduced you can request a defferial for a period of time to get you act back together. Don’t ignore notices from your lender as lack of contact sets the foreclosure process in motion.
Equivalent-Watch9744@reddit
Just pay like 5-10 dollars a month. They can’t garnish your husbands wages or take your tax return
kaitandco@reddit
I don’t know why I keep reading from people that if you only pay 5-10 a month it’s fine. If the designated owed amount isn’t paid in full each month, they consider that non-payment and will send it to collections, garnish your wages, take your tax return…
CallcenterUC@reddit
They can take your tax return if you default.
3-orange-whips@reddit
I received the same email. I am completely at a loss and terrified of wage garnishment. I live in Texas, so it's allowed. I was planning on starting another thread but I saw this one. Should I consolidate my loans? I never have before. I'm not opposed to paying them off (no shade on defaulters), but I can't pay an outrageous amount per month. Any advice?
Alexxx0207@reddit (OP)
I personally don’t know anything about consolidating. I hope someone here is able to give you some advice! Seems like a lot of people got the same email though.
Still-Zone6713@reddit
My parent got this email but they didn’t co-sign my undergrad federal loans so why did they get it? I’ve been making monthly payments too so I don’t understand.
pinkdiamonds00@reddit
Check if your state even allows wage garnishment (for example in PA wages cannot be garnished from student loan debt).
They cannot garnish wages without a judgement against you. And in order to get a judgement, first you need to sued and a judge rule in the favor of your lender.
It does not matter the amount, if you are not paying the full amount owed each month, the payments don't count and they will still be viewed as missed. If I were you, I'd instead put that $50 into an account and save it in case you are sued/ can start saving for a settlement amount.
They cannot take money from your account but I have heard of companies overtaking if you are enrolled in auto debt. Maybe someone will have a better response.
My best advice is to contact a lawyer to see how your husband will be affected and go from there.
Alexxx0207@reddit (OP)
Thanks for that advice! I own my car outright so hopefully nothing like that happens. I actually just put the loan into forbearance today since they couldn’t get my payment any lower. It’ll help for now while I contact someone and figure this out.
pinkdiamonds00@reddit
Good luck ! I am too preparing for a default this year.
Alexxx0207@reddit (OP)
Good luck with yours as well!