We all bought into the delusion about what America used to be….right? We’re a free and just country, individual people have rights, something called The Constitution exists…America abolished slavery…..remember all that?
Well, wake up Alice cause this ain’t Kansas anymore. My mind was just blown when I learned today that the federal government….or private contractors working for the federal government…can swoop in and garnish the wages…but here’s where it gets great….WITH NO NOTICE, NO HEARING, NO DUE PROCESS….
That’s right…no notice, no hearing, no due process. So here you are a good kid that went to college, studied hard and did what you were supposed to do….but you get out and there are no jobs. So you take your job at McDonalds, but before you know it your McPay is being garnished……15% of it….scary stuff, but true……
- The Higher Education Act, (P.L 102-164; 20 U.S.C. § 1095a) authorizes ED as well as student loan guaranty agencies to collect defaulted Federally-financed student loans by means of an administrative order to the employer, and without the need for a court order. This order requires the employer to withhold and pay over to ED or the guarantor up to 15% of the debtor’s disposable pay. This Federal law supersedes any state law governing wage garnishment.
- Section 488A of the Higher Education Act authorizes ED and student loan guarantors to collect defaulted Federally-financed student loans by means of an administrative garnishment order to the employer, without the need for a court order. This order requires the employer to withhold and pay over to ED a portion of the debtor’s disposable pay.
- Federal law authorizing this action supersedes any state law that might limit or prohibit wage garnishment, or would require a creditor to obtain a judgment or use specific procedures for wage garnishment.
- Debit blocks and other account tools used by banks to prevent fraud will not prevent your check from being cleared through our Treasury lockboxes.