Private College Student Loan

Can my wages be garnished over my student loan?

Hello. My student loan is a private student loan owned by the First Marblehead corp. It was serviced by American Education Services and gaurenteed by TERI. I read that TERI filled bankruptcy 4-7-08 and the FMH corp was looking for a new gaurentur. So with that swaid Im not sure if Teri will be the one paying FMH or if they will have to find a new garentur. I called TERI and they do not have my loan at this time FMH corp has it - so I assume that means TERI didnt pay out on it yet. My loan has been in default since 3/08. Now I see that the fair credit report says this "ALL states allow wage garnishment for child support, alimony, taxes and federal student loans" My loan was a private student loan so does this mean I am safe from this? My state doesnt allow any other type of wage garnishment other than this. THANKS Thanks Suddenly, But let me point out that Salle Mae uses a FEDERAL garenture and there for is considered a federal student laon even though it is marketed as private. TERI is not a federal garenture so it does not fall under the same law by the fair credit act that all states must abid by for FEDERAL loans.

Public Comments

1. If they can't garnish your wages, (which I'm pretty sure they still can) they will eventually get you by seizing your income tax returns. Read this article that ran this year about private student loans. http://www.newamerica.net/blogs/education_policy/2007/05/private_loan_bankruptcy