Admininstrative Wage Garnishment

Student Loan Debt Resolution Lawyers

Have you received notice of an Administrative Wage Garnishment due to a defaulted federal student loan? You may be able to avoid the garnishment, but you must take proper action in a timely manner. In our experience as student loan lawyers, a borrower is generally in an advantageous position when they attempt to resolve their loans prior to the instituion of garnishment. For example, once an account goes into garnishment, it might no longer be elegible for debt consolidation. Furthermore, in order to rehabilitate the loan, the borrower might have to make voluntary payments on the loan in addition to the amount being garnished.

If you are struggling with a student loan that is facing garnishment, contact our lawyers to learn how we can assist.

About Administrative Wage Garnishment (AWG)

The government has broad powers to collect on defaulted debt such as student loans and taxes. As opposed to private student loan lenders that must bring a lawsuit in order to engage in wage garnishments, the government may initiate remedies such as an Administrative Wage Garnishment or even an offset of federal tax returns without going to court. The power to garnish up to 15% of the borrowers disposable income comes under the Higher Education Act and the Debt Collection Improvement Act of 1996.

Admin Wage Garnishment (AWG) is part of a set of tools that the Department of Education uses to collect on defaulted loans. Some of their other tools are the Treasury Offest Program and the Federal Salary Offset program. When necessary, they can also elect to bring a student loan lawsuit in an attempt to obtain a court judgment.

Admin Wage Garnishment (AWG) Hearing

Prior to the institution of an Administrative Wage Garnishment, a notice is sent to the borrower allowing them either 15 or 30-days to inspect records relating to the debt, object to the garnishment, and/or enter into a voluntary repayment in order to avoid the garnishment. The borrower can also use this window of time to request an AWG Hearing that allows to borrower to contest the debt, or to object to the 15% garnishment as it would cause extreme financial hardship, or object on the basis that the borrower has been employed for less then 12-months after being "involuntarily separated" from their prior employment. If a hearing is requested, the garnishment will be held in abeyance until a decision is issued. If the borrower is claiming that the garnishment would could financial hardship, then they should provide documents to substantiate their income and expenses with the request for the hearing.

The garnishment is calculated as 15% of the borrowers "disposable" pay per pay period. However, there is a certain amount of income that is protected, which is calcuated by multiplying the minimum wage by 30. You can use the admin garnishment calculator to determine how your pay could be effected. If a hearing request is submitted after the commencement of the admin garnishment, it will not cause the garnishment to stop, unless you win the hearing.

Student Loan Wage Garnishment Lawyers

If you are in New York and have difficulties with a student loan wage garnishment, you may find that the guidance of an experienced professional to be invaluable in your goal of resolving your student loan debt. At the Law Office of Simon Goldenberg, our lawyers will take the time to understand your unique circumstances and will work hard to provide you with the best resolution available in your situation. Learn how our debt resolution attorneys help people resolve student loan wage garnishments.