If in default of student aid, can I.......?

I am in default my student aid about 55k. Use to be 25k but the rest are interest and collection fees and such. Anywho, my loan is way in default and now when i am ready to pay, they say i need to pay $600.00. It is too far gone so cannot negotiate hardships or anything like that. I told them i cannot pay this amount and they pretty much told me i have no choice. If i do not pay then i get my wages garnished and my income tax taken. My question is that if i was to not pay the 600.00 monthly and pay whatever i can afford every month will this take me out of default and if so in how many months? Will this still qualify me for the dreaded garnishment of wages and income tax? I welcome any valuable information. Thanks.

You need to talk to your lender. If you can show that you just cannot pay the $600 they may be willing to work on a graduated payment schedule. But if they aren't you probably need to look at debt consolidation so that you can pay back the loan. I can tell you from having worked for a state student loan lender that they will pursue you for however many years it takes unless you work with them to pay it back at some level. They will garnish your wages and if you skip, they will find you.

You may be locatable via your social security number for wages. Still, this takes time and time is money. They must locate you in your job, go to court, get the garnishment, before you feel it. If you change jobs, then their search starts all over, with a new court hearing, etc. As for your income tax, yes, they can take those refunds. Of course, if you happen to have claimed enough deductions and now have to pay...well, there's no refund.

I would suggest your seeing a debt councelor. They can often help you consolidate your debt, get the ridiculous interest charges dropped. If you ignore it...it won't go away. It will affect your ability to puchase a large ticket item such as a house or a car. You need to establish contact and a dialogue with the lender, either through the councelor, or yourself. Good luck!