Your ability to stop a student loan wage garnishment from Trellis Company depends on whether the garnishment order has been sent to your employer. When the garnishment order has been sent to your employer, the garnishment has started, whether or not your employer has started garnishing your wages.
What is Trellis Company?
Trellis Company is a nonprofit agency that guarantees student loans made under the US Department of Education's Federal Family Education Loan Program.
As a guaranty agency, Trellis insures your FFEL loans in case you defaulted.
When that happened, Trellis paid the lender that made your loan and took over collections. You now owe Trellis.
So is Trellis a legit company? Yes, Trellis Company is legit.
Trellis Company used to Texas Guaranteed Student Loan
How to stop a student loan garnishment from Trellis before it starts?
There are 5 ways to stop a student loan garnishment from Trellis before it starts:
- paying the loan balance in full
- negotiating a federal loan settlement
- applying for a Direct Consolidation loan
- entering into a loan rehabilitation agreement
- entering into a voluntary repayment agreement
For most student loan borrowers, the first two options are out of the question.
They simply don't have the money to pay either the balance or a settlement. Federal student loan settlements aren't cheap. The federal government typically won't accept less than 85% of the current loan amount.
Click here to read How to Settle Federal Student Loans For Less Than You Owe
Loan consolidation gets you out of default status in about 2 to 3 months. But the new loan will have the collection costs included in your new principal balance. As a result, you can end up owing much more in student loan debt than you originally borrowed.
The student loan rehabilitation program takes about 9 months to bring you defaulted student loans current. During those 9 months, you'll be making monthly payments to the collection agency based on either your discretionary income or disposable income or your income and expenses. At the end of the rehabilitation agreement, your loan will be sent to a new loan servicer to set up a new repayment plan.
Private student loans do not offer a loan rehabilitation program
The voluntary repayment agreement keeps your defaulted loans in a default status until you pay off your student debt. The main benefit of this option is that it stops a garnishment order from being sent to your employer. Typically, you would choose to make voluntary payments only if you've twice defaulted on the same loan and you can't rehabilitate or consolidate the loan.
Can you stop a garnishment from Trellis once it starts?
There are 3 ways to stop a student loan garnishment once it starts:
- entering into the loan rehabilitation program
- requesting a financial hardship review
- filing bankruptcy
The only option that stops the garnishment immediately is filing bankruptcy.
The loan rehabilitation program takes about 5 months to stop the garnishment and requesting a financial hardship review takes about 2 to 3 months.
How to get into the Loan Rehabilitation Program with Trellis?
Follow these 5 steps to stop a student loan wage garnishment after it starts with student loan rehabilitation:
- check studentaid.gov to make sure you don't have any other loans in default
- contact Trellis and ask them if you're eligible for the student loan rehabilitation program
- submit all necessary documents, including the loan rehabilitation agreement letter.
- follow up with Trellis to confirm all documents have been received and approved
- make sure all of your monthly payments are made.
Click here to read Should I Sign the Loan Rehabilitation Agreement Letter?
To try and stop the student loan wage garnishment via extreme financial hardship, contact Trellis and ask to submit a hardship request. The form is not available online.In my experience, a hardship request almost never ends with the wage garnishment being stopped. More often, I see that the wage garnishment continues at the same amount or is lowered slightly.
You can contact Trellis Company M-Th 8am to 7pm CST and F 8am to 5pm CST at:
PO Box 659602
San Antonio TX 78265-9602