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Haunting Student Loan Debts
By Henry Byers

In today's ever changing economy, it's hard enough for the
average working individual to make ends meet, without a wage
garnishment, while supporting themselves or their families.
Sometimes living pay check to pay check with the regular bills
and sudden unexpected expenses is hard enough without having an
old student loan debt rear its ugly head to bite you in the
wallet. Borrowers who have not made voluntary and timely
payments to the institution from which a loan was made, may
face a wage garnishment through their current employer.  

Under the Higher Education Act, the Department of Education and
security agencies can require employers to deduct a minimum of
10% of the indebted employee's pay check each pay period toward
repayment of the debt. This wage garnishment may continue until
the entire balance of the outstanding debt is paid. This method
of wage garnishment is used only for the borrowers who refuse to
voluntarily repay their defaulted loan and is not used with
those borrowers who continue to make regular and timely
payments.  

Employers who have received an Order for Withholding of Wages
must conform to the order by law. Employers will only receive
information that is necessary to conform with the wage
garnishing order and are prohibited to discharge the borrower
from employment, or subject the individual to disciplinary
action due to wage garnishment. Any individual who is
discharged from their job or disciplined is allowed to seek
restitution in federal or state court if such action occurs.
Administrative Wage Garnishment is a tool of last resort used
by the U.S. Department of Education to recover defaulted
student loans through wage garnishment. Thirty days prior to
the issuance of the Order of Withholding, a notice is sent to
the borrower notifying that individual of the Department of
Education's intent to garnish wages and of the borrower's
rights and appeal procedures.

To avoid wage garnishments, the borrower has an opportunity to
enter into a written agreement under terms agreeable to
Department of Education to establish a voluntary repayment
arrangement. If the borrower has any objections to the
existence, amount, or enforce-ability of the debt, a hearing
can be arranged to present and obtain a ruling; also of any
objection that wage garnishment of the borrowers disposable pay
would produce an extreme financial hardship. A wage garnishment
action can be withheld by filing a timely request for a
hearing. No action will be taken until the hearing is completed
and a decision is issued.

Borrowers may also object to a wage garnishment if the validity
of the claim is in question or if the current enforce-ability of
the claim is barred by law. The borrower is responsible for
providing documentation or evidence to corroborate any
objections raised in defense to the enforcement of the debt. It
would be in your best interest to learn all you can about
garnishment law.

About the Author: Henry Byers, Retired IRS Manager and IRS Wage
Garnishment expert at eGarnish Group LLC (
http://www.irs-wage-garnishment.info ) publishes other articles
related to IRS Wage Garnishment at
http://www.garnishment-attorney.info and
http://www.irs-bank-levy.info

Source: http://www.isnare.com

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