I have received an AWG withholding order from a guaranty agency – is a guaranty agency also authorized to garnish employee wages for student loan debts?
Yes, guaranty agencies are authorized by section 488A of the Higher Education Act, 20 U.S.C. 1095a, to garnish employee wages for Federally-reinsured student loan debts. Student loan guarantors may order the employer of such a debtor to withhold up to 10% of the disposable pay of a defaulted borrower to repay the loan. For a list of guaranty agencies, see the “Our Partners” section at the bottom of this web page. If you have a question concerning a guaranty agency, call our office at (404) 562-6013.
Related Questions
- I have received an AWG withholding order from a guaranty agency - is a guaranty agency also authorized to garnish employee wages for student loan debts?
- What types of payments or benefits received by the employee from the employer are considered wages with DI and PFL benefits?
- Does the Canada Revenue Agency need a court order in order to garnish my wages?
