Q: How to stop a student loan garnishment from Coast Professional?

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Stanley tate

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Coast Professional can garnish your wages for defaulted federal student loans. You have three options to stop the wage garnishment before it starts:

  • Enter into the student loan rehabilitation program
  • Negotiate a student loan settlement
  • Apply for a Direct Consolidation Loan

After wage garnishment starts, your options are limited to stop it. This guide will help you work with Coast Professional to bring your student loans back into good standing.

Is Coast Professional legit?

Coast Professional Collection Services is legit. They are not a scam. They are a Louisiana-based debt collector (not a law firm) hired by the Department of Education to handle federal student loan collection accounts (Federal Family Education Loans (FFEL), Direct Loans, Federal Perkins Loans, etc.).

They are not the original creditor for your student loan debt.

Coast Professional has been accredited with the Better Business Bureau (BBB) since 2018.


If representatives from Coast Professional harass you with countless phone calls, use obscene language, or give you false information, you can report them to the Consumer Financial Protection Bureau (CFPB). You may also be able to take legal action against them by hiring an attorney specializing in the Fair Debt Collection Practices Act (FDCPA).

Inaccurate reporting

Many federal student loan borrowers hear of Coast Professional when they get an alert from Credit Karma or another credit reporting service. The alert prompts them to contact Coast Professional about the alleged debt and send a debt validation request. Unfortunately, Coast Professional hardly ever responds to debt validation requests for defaulted federal student loans.

As a result, borrowers submit complaints to the Consumer Financial Protection Bureau (CFPB) and other consumer rights agencies regarding inaccurate reporting.

Those complaints are typically unsuccessful.

Coast Professional is reporting negative information to the credit bureaus because:

  • your federal student loans are in default and
  • the U.S. Department of Education has assigned them your defaulted loans for collections.

You can confirm they've been assigned your loans by contacting the Department of Education's Default Resolution Group.

Can Coast Professional sue me?

Coast Professional does not sue federal student loan borrowers for defaulted student loans. However, they can garnish your wages without filing a lawsuit against you. The federal government gives them power to garnish your wages using an administrative wage garnishment order.

How to get your student loans from Coast Professional

Most student loan borrowers have three options to get out of default:

  1. Enter into the student loan rehabilitation program
  2. Negotiate a student loan settlement
  3. Apply for a Direct Consolidation Loan

All three options can stop a student loan garnishment before it starts.

After a student loan wage garnishment starts, only the loan rehabilitation and student loan settlement can stop the garnishment.

Click here to schedule a call with me to stop a wage garnishment.

Loan Rehabilitation Program

Coast Professional offers the loan rehabilitation program on behalf of the U.S. Department of Education.

The loan rehabilitation program gets borrowers out of default in 9 months.

There are 5 things you should know about Cost Professional's Loan Rehabilitation Program:

  1. Eligibility requirements
  2. How payments are calculated
  3. Wage garnishment stops after the 5th monthly payment
  4. Credit score
  5. What happens after you complete the program


1. Loan rehabilitation program eligibility

You're eligible for the loan rehabilitation program if you've never successfully completed the program for the same loan before.

Consider, if you defaulted on a student loan before and completed the loan rehabilitation program, you cannot complete the rehabilitation program a second time for that loan.

You successfully complete the loan rehabilitation program if:

  • you send your income documentation and forms (pay stub, tax return, etc.) to the collection agency
  • you sign and return the Loan Rehabilitation Agreement Letter
  • you confirm the documents and letter have been received and approved
  • you make the 9 required monthly payments on time.

2. How payments are calculated

Your monthly payment amount under the rehab program is based on either:

  • the adjusted gross income and the dependents claimed on your federal tax return or
  • your current income, expenses, and family size.

If you're married and living with your spouse, the rep from Coast Professional will demand your spouse's financial information.

Even if you and your spouse keep separate personal finances, your spouse's income information will be required to calculate your student loan payments.

There's only one way your spouse's information won't be included:

if you're married, but you and your spouse live separately.

Click here to schedule a call with me to get help with a lower monthly payment.

3. Wage garnishment stops after your 5th payment

Coast Professional can garnish your wages until you make your 5th payment under the loan rehabilitation program.

Until then, you will have to make the monthly payments in addition to your wages being garnished.

(Coast Professional can still do a Treasury Offset of your tax refund and Social Security Benefits even though you're in the loan rehabilitation program.)

4. Credit score update

Starting the loan rehabilitation program doesn't change your credit score. However, your credit report won't be updated until you complete the program.

After you make your 9th monthly payment, the default status will be removed from your defaulted student loans included in the program.

The late payment history will remain on your credit report.

If your loans weren't on your credit report before completing the program, the loans would reappear on your credit report. The previous late payment history should not appear.

You may be able to take legal action if your credit report isn't updated with all credit bureaus promptly.

Contact a credit repair company if you need help cleaning up your credit reports.

5. What happens after you complete the program

After you complete the loan rehabilitation program, your student loans will be sent to a new student loan servicer.

You cannot control which student loan servicer your loans are sent to.

The loan servicer should contact you (usually by mail) to let you know your repayment options.

Most borrowers have the option to repay their student loans under an income-driven repayment plan:

  • Revised Pay As You Earn
  • Pay As You Earn
  • Income-Based Repayment
  • Income-Contingent Repayment

Once your loans are in good standing, you're eligible for deferment, forbearance, loan forgiveness programs, new financial aid, etc.

Coast Professional student loan settlement

Coast Professional accepts student loan settlements.

Here are a few things you should know:

  • Although Coast Professional is a debt collection agency, they didn't buy your student loan for pennies on the dollar.
  • The Department of Education hired Coast Professional to collect your defaulted student loan.
  • Because they didn't buy your student loan at a discount, the settlement offer they'll accept won't save you much money off the total amount owed.
  • Most federal student loan settlements will be for 10-15% of the loan balance, less collection fees.

How to get a settlement

You can get a student loan settlement by calling Coast Professional, Inc.

The representative will first ask if you can pay the balance in full. If you say no, the representative will give you an offer to settle your student loan debt.

You can counter that offer. But Coast Professional doesn't have to accept.

I have had some success getting a slightly lower settlement offer. But not much.

Click here to schedule a call with me to talk about settling your student loans.

Loan consolidation

You can get out of default by applying for loan consolidation.

Loan consolidation pays off the principal, interest, and collection fees of your defaulted loans.

The new interest rate of your Direct Consolidation Loan will be the weighted average of the loans included in the consolidation.

Loan consolidation won't remove the default status or late payment history from your credit history. Instead, it will pay off your defaulted federal student loans and put a new installment loan on your credit report.

You can apply for a Direct Consolidation Loan for free at studentaid.gov.

If you work for the government and nonprofit and want student loan forgiveness, choose FedLoan Servicing as your student loan servicer.

Coast Professional, Inc. contact information

  • Phone number: 866-681-1069
  • Fax: 318-807-5001
  • Web: www.coastprofessional.com
  • Mailing address: Department of Education Division, Coast Professional Inc. PO Box 2899 West Monroe LA 71292
  • Corporate address: 4273 Volunteer Rd, Geneseo, NY 14454-9444
  • Contact hours: 8:00 am to 9:00 pm EST Mon – Thurs., 8:00 am to 4:30 pm EST Fri.

Need help with Coast Professional? Let's talk

Dealing with a debt collector can be challenging. And that's especially true when you're not sure of your rights, and you feel as if you're being misled.

For years, I've helped people like you get their federal and private student loans out of default while eliminating as much collection fees and interest as possible.

Schedule a free 10-minute call with me today. We'll work together to develop a plan that gets you out of default quickly.

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I'm a student loan lawyer that helps people like you with their federal and private student loans wherever they live.

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