Borrowers and wage garnishments

Last week, the Department of Education noted in a press release  that it would end administrative wage garnishment. (This applies only to federal loans). However, they added that the government "must rely on employers to make the changes to borrowers' paychecks." According to the release, for borrowers to receive assistance, they must contact their employers' HR departments to request a halt to the garnishment. Unfortunately, this can be difficult because human resources legally won't make changes to wage garnishments without appropriate orders directly referencing the employee. At this point, it would appear that many employers and employees will be confused over what to do.

Tamara Cesaretti of the Student Borrower Protection Center has requested that those who have stories of borrowers facing problems with administrative wage garnishment since March 13 to submit their stories here to bring this problem to light.

You can also visit the SBPC website here. 


 

Larry Taylor, PhD

Written by Larry Taylor, PhD

Larry has over 20 years of experience as a marketing technologist and developer of financial education programs. One of his primary missions is to help professionals establish greater trust in their online audiences and to humanize digital communications. Larry holds a Ph.D. in Psychology with an emphasis on media.

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