What determines whether an account goes to wage garnishment versus IRS offset when a borrower is in default?
There is no determination to do either administrative wage garnishment (AWG) or IRS offset. They are both non-voluntary payment methods. Determination is made as an effort to collect from a borrower that will not or cannot enter into voluntary payments. Both AWG and IRS are considered involuntary payments, so a borrower can be in wage garnishment and still have their IRS refund intercepted.
