Wage Garnishment for Student Loan Defaults

Did you know that Sallie Mae or collectors for Federal Student Loan can garnish your wages without a NOTICE, HEARING or a LAWSUIT.

The government can garnish 15% of your wages if you fall behind on your student loans, and here is the laws that assist them:

• The Higher Education Act, (P.L 102-164; 20 U.S.C. § 1095a) authorizes ED as well as student loan guaranty agencies  to collect defaulted Federally-financed student loans by means of an administrative order to the employer, and without the need for a court order. This order requires the employer to withhold and pay over to ED or the guarantor up to 15% of the debtor’s disposable pay. This Federal law supersedes any state law governing wage garnishment.
• Section 488A of the Higher Education Act authorizes ED and student loan guarantors to collect defaulted Federally-financed student loans by means of an administrative garnishment order to the employer, without the need for a court order. This order requires the employer to withhold and pay over to ED a portion of the debtor’s disposable pay.
• Federal law authorizing this action supersedes any state law that might limit or prohibit wage garnishment, or would require a creditor to obtain a judgment or use specific procedures for wage garnishment.
• Debit blocks and other account tools used by banks to prevent fraud will not prevent your check from being cleared through our Treasury lockboxes.