Can NCO Financial Systems garnish my wages for federal student loans that are in default?

Asked almost 2 years ago - Orlando, FL

I live in Winter Park, FL
I am head of household. One child 4 years. Wife who does not work

Attorney answers (3)

  1. 1

    Lawyer agrees

    Answered . I agree with my two colleagues. The government can also setoff your tax refund to go towards paying the federal student loan debt. Your best bet is to get yourself in a non-delinquent status.

    The above information does not establish an attorney-client relationship and is based upon the limited information... more
  2. 2

    Lawyers agree

    Answered . No, they can't, but the government can without getting a judgment.

    If a debt collector from NCO told you they are going to garnish your paycheck that is most likely a violation of the FDCPA. I would contact a local FDCPA attorney to see if you have a claim. Try the NACA site to find one:

    You need to get your loans out of default though. You can get them out of default by consolidation through Direct loans.

    If you have already used consolidation through Direct loans you can still rehabilitate them. Consolidation is better though because you take them right our of default and into an alternate payment plan like Income Based Repayment.

    The information provided here is intended to help you be an informed legal consumer and is not a substitute for... more
  3. 1

    Lawyer agrees

    Answered . NCO Financial Systems is a third party debt collector that collects, among other things, student loans. When one doesn't pay their student loans back their income can be garnished/assigned according to Federal Law to satisfy the debt. What NCO Financial Systems cannot do is treat you unfairly or violate the FDCPA. If they violate the FDCPA by calling you at odd times, calling you over and over, threatening to take action that they cannot take, etc. then you are the one that will be suing them.

    See if there is a rehabilitation program that you can enroll in to perhaps get the loans current. I wish you well, sir. If NCO steps over the line and abuses you or is rude to you hire one of us consumer attorneys to enforce your rights. Let me know if you have a follow up question, I'd be glad to help.

    I am an attorney licensed to practice law in Ohio and some Federal Courts throughout the United States. I am not... more

Related Topics

Wage garnishment

Wage garnishment is the process whereby your employer sends part of your paycheck directly to your creditor in order to pay off your debt.

Dorothy G Bunce

Wage Garnishment

If you have a wage garnishment or if your bank account has been attached by a creditor, you may be mad or you may just be frightened. You don't need to be a victim because the law provides... more

Nondischargeable debt and student loans

Student loans cannot normally be discharged in bankruptcy. Unlike most other types of debt, student loans are nondischargeable--except in cases of hardship.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

37,424 answers this week

3,933 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

37,424 answers this week

3,933 attorneys answering