How does the employer handle federal student loan garnishments?
There are special rules for federal student loans. Federal student loan garnishment orders are not subject to state law. That means that in Oregon, for example, such orders do not expire after 90 days, but remain in effect until the loan is paid off or until the U.S. Department of Education stops demanding payment. However, federal student loan garnishment orders are capped at 10% of income. Consequently, if another garnishment writ comes in while a federal student loan garnishment is being paid, the employer must begin paying on the second writ at 15% of income. If the employee is being garnished on another writ at 25% when the federal student loan garnishment order comes in, the employer does not need to begin paying on the student loan garnishment. In that event, however, the employer should contact the agency that issued the student loan garnishment order, or contact the Department of Education student loan compliance center at (404) 562-6013 and follow up with a letter to: U.S. De
