Insights Into How Our Legal System Works

Insights Into How Our Legal System Works

Two Ways To Get Money To Pay For A Student Loan Rehabilitation Agreement

by Yolanda Lane

When a person defaults on a federal student loan, the Department of Education will garnish up to 25 percent of his or her wages. While you can file bankruptcy to stop the garnishment, the relief will only be temporary. Student loans are not discharged in bankruptcy, so the government can and will attach your wages again once the case ends. It's possible to stop the garnishment by taking part in the government's loan rehabilitation program. However, you have to make payments on the loan—in addition to the amount being garnished—for five months before the Department of Education will stop taking your money. If you're already struggling to stay on top of your bills, here are two ways to get money to make those extra payments.

Sponsor Change

Although you may be working a full-time job already, you can earn money to pay off your student loans if you can spare a few hours per month to do volunteer work through an organization called Sponsor Change. This company has developed a patron-based program where people work for various non-profit organizations in their communities via Sponsor Change's website. In return, the organizations give money to Sponsor Change who then applies the funds directly to the volunteers' student loans. Volunteers work about 8 to 10 hours per month and make anywhere from $10 to $20 per hour.

Currently, the program is limited to people who live in Pittsburgh, Washington D.C., and Chicago. If you don't live in these areas, you may still be able to participate by connecting to an organization in your town who has signed up with Sponsor Change. This is a good way to get your student loans paid down as well as obtain work experience that may help you qualify for a better job.


If you're only working part time, another option is to join Americorps. This is a network of service programs across the nation where people basically work with public agencies, non-profits, and community organizations to serve the needs of people at the local, state, or national level. For instance, an Americops worker may help rebuild a community after a natural disaster.

Members serve a 10-month term. During that time, they're paid a small stipend of about $200 every two weeks. Members also receive free meals and housing. This can free up money that can be applied to your student loans. However, the real benefit of joining Americorps is, at the end of the service term, workers receive an educational award of $5,730 they can use to pay off their student loans.

Different Americorps programs have different eligibility requirements. In general, you must be at least 17 to 18 years of age, a US citizen, and be able to pass a criminal background check if you sign up for a program that deals with children or the elderly.

For more information about other ways to stop a Department of Education wage garnishment or assistance with filing for bankruptcy, contact a bankruptcy attorney like Stuart R Whitehair Attorney.


About Me

Insights Into How Our Legal System Works

Hello, I'm Christina Miller. Have you ever been fascinated with why the law works the way it does? Ever since I was in junior high, I had an intense interest in anything related to our legal system, whether it be a crime drama on television, a judge show or a legal case covered on the news. I followed it all. As time progressed, I began learning about how the actual legal system worked and not just the fictionalized version of our legal system. This has lead me to start writing my own blog posts about law that I hope will help others.