Are you familiar with the William D. Ford Federal Direct Loan (Direct Loan) and Federal Family Education Loan (FFEL) programs? Can my loan holder's wage garnishments continue during loan rehabilitation?
Yes, wage garnishments or any involuntary payments could continue even after you have been making payments under the loan rehabilitation agreement but they will not be counted toward your mandatory nine payments.
Another question, if my loan is in a collection agency, what other costs could I incur? and do private collection agencies earn a commission from payments?
The private collection agencies earn a commission for any payments you make.