I have recently received an order of wage Garnishment for a student loan I had 20 years ago.I requested a hearing and opted to do it through the mail. I know that I paid this loan off in full a long time ago.At the time I had no checking account and paid my bills with money orders.I wrote aletter to the Dept of Education stating I had Paid this loan off and also filled out the appropriate forms for my hearing.When I got There response it said that I could not show that I paid the money ,and their records indicate that it was not paid.Theirfore I have to pay in full plus penalties and fees.They did send me a form that said I could claim financial hardship . I filled this out and sent it registerd with a return receipt so I would know they got it.I got a response that it was incomplete and they are proceeding with the wage garnishment. My employer says they have to send the money to them and there is nothing I can do.But I don't even owe this money and I can't believe there is no recourse.Does anyone know anything that can help?

I have recently recieved an order of wage Garnishment for a student loan I had 20 years ago.I requested a hearing and opted to do it through the mail. I know that I paid this loan off in full a long time ago.At the time I had no checking account and paid my bills with money orders.I wrote aletter to the Dept of Education stating I had Paid this loan off and also filled out the appropriate forms for my hearing.When I got There response it said that I could not show that I paid the money ,and their records indicate that it was not paid.Theirfore I have to pay in full plus penalties and fees.They did send me a form that said I could claim financial hardship . I filled this out and sent it registerd with a return reciept so I would know they got it.I got a response that it was incomplete and they are proceeding with the wage garnishment. My employer says they have to send the money to them and their is nothing I can do.But I dont even owe this money and I can't believe their is no recourse.Does anyone know anything that can help?


You said you paid it off a long time ago - your Bank no longer has those records, you don't have records as part of your income tax records?

The only way to stop the garnishment is to prove it's already been paid -

This is the first time you've heard about it in how many years - ?

How do you know you paid the loan in full? Can you get a copy of your money orders? You may need to request a copy of a statement of your account with the lender; see how many payments, and what amount, it gives you credit for making.