U.S. Code » Title 20 » Chapter CHAPTER 28— HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › Subchapter SUBCHAPTER IV— STUDENT ASSISTANCE › Part Part G— General Provisions Relating to Student Assistance Programs

20 U.S.C. § 1095a

Wage garnishment requirement

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 20 CasesGoogle Scholar
(a) Garnishment requirementsNotwithstanding any provision of State law, a guaranty agency, or the Secretary in the case of loans made, insured or guaranteed under this subchapter that are held by the Secretary, may garnish the disposable pay of an individual to collect the amount owed by the individual, if he or she is not currently making required repayment under a repayment agreement with the Secretary, or, in the case of a loan guaranteed under part B on which the guaranty agency received reimbursement from the Secretary under section 1078(c) of this title, with the guaranty agency holding the loan, as appropriate, provided that—(1) the amount deducted for any pay period may not exceed 15 percent of disposable pay, except that a greater percentage may be deducted with the written consent of the individual involved;(2) the individual shall be provided written notice, sent by mail to the individual’s last known address, a minimum of 30 days prior to the initiation of proceedings, from the guaranty agency or the Secretary, as appropriate, informing such individual of the nature and amount of the loan obligation to be collected, the intention of the guaranty agency or the Secretary, as appropriate, to initiate proceedings to collect the debt through deductions from pay, and an explanation of the rights of the individual under this section;(3) the individual shall be provided an opportunity to inspect and copy records relating to the debt;(4) the individual shall be provided an opportunity to enter into a written agreement with the guaranty agency or the Secretary, under terms agreeable to the Secretary, or the head of the guaranty agency or his designee, as appropriate, to establish a schedule for the repayment of the debt;(5) the individual shall be provided an opportunity for a hearing in accordance with subsection (b) on the determination of the Secretary or the guaranty agency, as appropriate, concerning the existence or the amount of the debt, and, in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph (4), concerning the terms of the repayment schedule;(6) the employer shall pay to the Secretary or the guaranty agency as directed in the withholding order issued in this action, and shall be liable for, and the Secretary or the guaranty agency, as appropriate, may sue the employer in a State or Federal court of competent jurisdiction to recover, any amount that such employer fails to withhold from wages due an employee following receipt of such employer of notice of the withholding order, plus attorneys’ fees, costs, and, in the court’s discretion, punitive damages, but such employer shall not be required to vary the normal pay and disbursement cycles in order to comply with this paragraph;(7) if an individual has been reemployed within 12 months after having been involuntarily separated from employment, no amount may be deducted from the disposable pay of such individual until such individual has been reemployed continuously for at least 12 months; and(8) an employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage withholding in accordance with this section by reason of the fact that the individual’s wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdiction any employer who takes such action. The court shall award attorneys’ fees to a prevailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order such other remedy as may be reasonably necessary.(b) Hearing requirements

A hearing described in subsection (a)(5) shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection (a)(2), and in accordance with such procedures as the Secretary or the head of the guaranty agency, as appropriate, may prescribe, files a petition requesting such a hearing. If the individual does not file a petition requesting a hearing prior to such date, the Secretary or the guaranty agency, as appropriate, shall provide the individual a hearing under subsection (a)(5) upon request, but such hearing need not be provided prior to issuance of a garnishment order. A hearing under subsection (a)(5) may not be conducted by an individual under the supervision or control of the head of the guaranty agency, except that nothing in this sentence shall be construed to prohibit the appointment of an administrative law judge. The hearing official shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing.

(c) Notice requirements

The notice to the employer of the withholding order shall contain only such information as may be necessary for the employer to comply with the withholding order.

(d) No attachment of student assistance

Except as authorized in this section, notwithstanding any other provision of Federal or State law, no grant, loan, or work assistance awarded under this subchapter, or property traceable to such assistance, shall be subject to garnishment or attachment in order to satisfy any debt owed by the student awarded such assistance, other than a debt owed to the Secretary and arising under this subchapter.

(e) “Disposable pay” defined

For the purpose of this section, the term “disposable pay” means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by law to be withheld.

(Pub. L. 89–329, title IV, § 488A, as added Pub. L. 102–164, title VI, § 605(a), Nov. 15, 1991, 105 Stat. 1066; amended Pub. L. 105–244, title IV, § 490A, Oct. 7, 1998, 112 Stat. 1753; Pub. L. 109–171, title VIII, § 8024, Feb. 8, 2006, 120 Stat. 180.)Editorial NotesAmendments

2006—Subsec. (a)(1). Pub. L. 109–171 substituted “15 percent” for “10 percent”.

1998—Subsecs. (d), (e). Pub. L. 105–244 added subsec. (d) and redesignated former subsec. (d) as (e).

Statutory Notes and Related SubsidiariesEffective Date of 2006 Amendment

Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title.

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of this title.

Notes of Decisions
Cited in 52 cases (3 in the last 5 years), 1996–2024 · leading case: Cliff v. Payco Gen. Am. Credits, Inc., 363 F.3d 1113 (11th Cir. 2004).
Sort: Relevance Newest Treatment
Cliff v. Payco Gen. Am. Credits, Inc., 363 F.3d 1113 (11th Cir. 2004). · cites it 5× “According to 20 U.S.C. § 1095a: Notwithstanding any provision of State law, a guaranty agency .”
Savage v. Scales, 310 F. Supp. 2d 122 (D.D.C. 2004). · cites it 11× “Whether 20 U.S.C. § 1095a’s Garnishment Procedures Violated Plaintiffs Due Process Rights Although not asserted with perfection, plaintiff alleges that his wages were garnished without notice, which violated his due process rights.”
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). · cites it 20× “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
Biber v. Pioneer Credit Recovery, Inc., 229 F. Supp. 3d 457 (E.D. Va. 2017). · cites it 9× “3 Specifically, the SAC alleges that Pioneer used false, deceptive, or misleading representations or means in the following ways: • Pioneer “falsely represented] that it was going to perform an Administrative Wage Garnishment, without first providing the notices required by 20…”
Kort v. Diversified Collection Servs., Inc., 394 F.3d 530 (7th Cir. 2005). · cites it 4× “See 20 U.S.C. § 1095a. Before wages can be administratively garnished, however, the guarantor, or its agent, must give the debtor at least thirty days’ notice.”
Educ. Credit Mgmt. Corp. v. Optimum Welding, 285 F.R.D. 371 (D. Maryland 2012). · cites it 5× “Analysis Taking as true the allegations of the complaint, ECMC has established compliance with the procedures set forth in 20 U.S.C. § 1095a(a). There is a deficiency of proof, however, with regard to the borrower’s employment status.”
Sherry Council Bennett v. Premiere Credit of North Am., LLC, Educ. Credit Mgmt. Corp., 504 F. App'x 872 (11th Cir. 2013). · cites it 9× “However, we have consistently held that “[w]hile the HEA endows debtors with certain rights during the wage garnishment process, the HEA expressly empowers only the Secretary of Education — not debtors — with the authority to enforce the HEA and rectify HEA violations.”
Green v. Kentucky Higher Educ. Assistance Auth., 78 F. Supp. 2d 1259 (S.D. Ala. 1999). · cites it 27× “Plaintiff Bernadette Green brought this civil action seeking declaratory and injunctive relief with respect to an administrative wage garnishment imposed by defendant Kentucky Higher Education Assistance Authority (KHEAA) pursuant to 20 U.S.C. § 1095a. 2. Ms. Green was an…”
Wheeler v. Premiere Credit of North Am., LLC, 80 F. Supp. 3d 1108 (S.D. Cal. 2015). · cites it 3× “See 20 U.S.C. § 1095a; see also Bennett v. Premiere Credit of N.”
Halperin v. Reg'l Adjustment Bureau, Inc., 206 F.3d 1063 (11th Cir. 2000). · cites it 7× “The district court issued a declara *1065 tory order concluding that under section 488A of the Higher Education Act, codified at 20 U.S.C. § 1095a (“§ 1095a”), multiple holders of defaulted student loans are subject to a cumulative garnishment limit of ten percent of the…”
United Student Aid Funds, Inc. v. South Carolina Dep't of Health, 588 S.E.2d 599 (S.C. 2003). · cites it 5× “20 U.S.C.A. § 1095a(a). Under the Act, a guaranty agency may issue a withholding order requiring a defaulted borrower’s employer to withhold 10% of the borrower’s disposable income until the debt is paid.”
Educ. Credit Mgmt. Corp. v. Cent. Equip. Co., 477 F. Supp. 2d 788 (E.D. Ky. 2007). · cites it 8× “S7291-02, S7369; 20 U.S.C. § 1095a. The legislative history reflects that the amendments would “provide a uniform authority under which the Secretary and guaranty agencies could garnish the pay of student loan defaulters,” allow the Secretary to pursue loans administratively…”
Show all 52 citing cases →
— 20 U.S.C. § 1095a(a) — 12 cases
Cliff v. Payco Gen. Am. Credits, Inc., 363 F.3d 1113 (11th Cir. 2004). “According to 20 U.S.C. § 1095a: Notwithstanding any provision of State law, a guaranty agency .”
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
Sherry Council Bennett v. Premiere Credit of North Am., LLC, Educ. Credit Mgmt. Corp., 504 F. App'x 872 (11th Cir. 2013). “However, we have consistently held that “[w]hile the HEA endows debtors with certain rights during the wage garnishment process, the HEA expressly empowers only the Secretary of Education — not debtors — with the authority to enforce the HEA and rectify HEA violations.”
Educ. Credit Mgmt. Corp. v. Optimum Welding, 285 F.R.D. 371 (D. Maryland 2012). “Analysis Taking as true the allegations of the complaint, ECMC has established compliance with the procedures set forth in 20 U.S.C. § 1095a(a). There is a deficiency of proof, however, with regard to the borrower’s employment status.”
Murungi v. Texas Guaranteed, 693 F. Supp. 2d 597 (E.D. La. 2010).
— 20 U.S.C. § 1095a(a)(1) — 1 case
Educ. Credit Mgmt. Corp. v. Tkd Auto., Inc. (M.D.N.C. 2020).
— 20 U.S.C. § 1095a(a)(2) — 7 cases
Kort v. Diversified Collection Servs., Inc., 394 F.3d 530 (7th Cir. 2005). “See 20 U.S.C. § 1095a. Before wages can be administratively garnished, however, the guarantor, or its agent, must give the debtor at least thirty days’ notice.”
Biber v. Pioneer Credit Recovery, Inc., 229 F. Supp. 3d 457 (E.D. Va. 2017). “3 Specifically, the SAC alleges that Pioneer used false, deceptive, or misleading representations or means in the following ways: • Pioneer “falsely represented] that it was going to perform an Administrative Wage Garnishment, without first providing the notices required by 20…”
Savage v. Scales, 310 F. Supp. 2d 122 (D.D.C. 2004). “Whether 20 U.S.C. § 1095a’s Garnishment Procedures Violated Plaintiffs Due Process Rights Although not asserted with perfection, plaintiff alleges that his wages were garnished without notice, which violated his due process rights.”
Sherry Council Bennett v. Premiere Credit of North Am., LLC, Educ. Credit Mgmt. Corp., 504 F. App'x 872 (11th Cir. 2013). “However, we have consistently held that “[w]hile the HEA endows debtors with certain rights during the wage garnishment process, the HEA expressly empowers only the Secretary of Education — not debtors — with the authority to enforce the HEA and rectify HEA violations.”
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
— 20 U.S.C. § 1095a(a)(5) — 6 cases
Cliff v. Payco Gen. Am. Credits, Inc., 363 F.3d 1113 (11th Cir. 2004). “According to 20 U.S.C. § 1095a: Notwithstanding any provision of State law, a guaranty agency .”
Savage v. Scales, 310 F. Supp. 2d 122 (D.D.C. 2004). “Whether 20 U.S.C. § 1095a’s Garnishment Procedures Violated Plaintiffs Due Process Rights Although not asserted with perfection, plaintiff alleges that his wages were garnished without notice, which violated his due process rights.”
Sherry Council Bennett v. Premiere Credit of North Am., LLC, Educ. Credit Mgmt. Corp., 504 F. App'x 872 (11th Cir. 2013). “However, we have consistently held that “[w]hile the HEA endows debtors with certain rights during the wage garnishment process, the HEA expressly empowers only the Secretary of Education — not debtors — with the authority to enforce the HEA and rectify HEA violations.”
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
Educ. Credit Mgmt. Corp. v. Cherish Prods. Inc., 312 F. Supp. 2d 1183 (D. Minnesota 2004).
— 20 U.S.C. § 1095a(a)(6) — 14 cases
Educ. Credit Mgmt. Corp. v. Optimum Welding, 285 F.R.D. 371 (D. Maryland 2012). “Analysis Taking as true the allegations of the complaint, ECMC has established compliance with the procedures set forth in 20 U.S.C. § 1095a(a). There is a deficiency of proof, however, with regard to the borrower’s employment status.”
Sherry Council Bennett v. Premiere Credit of North Am., LLC, Educ. Credit Mgmt. Corp., 504 F. App'x 872 (11th Cir. 2013). “However, we have consistently held that “[w]hile the HEA endows debtors with certain rights during the wage garnishment process, the HEA expressly empowers only the Secretary of Education — not debtors — with the authority to enforce the HEA and rectify HEA violations.”
United Student Aid Funds, Inc. v. South Carolina Dep't of Health, 588 S.E.2d 599 (S.C. 2003). “20 U.S.C.A. § 1095a(a). Under the Act, a guaranty agency may issue a withholding order requiring a defaulted borrower’s employer to withhold 10% of the borrower’s disposable income until the debt is paid.”
Savage v. Scales, 310 F. Supp. 2d 122 (D.D.C. 2004). “Whether 20 U.S.C. § 1095a’s Garnishment Procedures Violated Plaintiffs Due Process Rights Although not asserted with perfection, plaintiff alleges that his wages were garnished without notice, which violated his due process rights.”
Educ. Credit Mgmt. Corp. v. Cherish Prods. Inc., 312 F. Supp. 2d 1183 (D. Minnesota 2004).
— 20 U.S.C. § 1095a(a)(7) — 1 case
Kort v. Diversified Collection Servs., Inc., 394 F.3d 530 (7th Cir. 2005). “See 20 U.S.C. § 1095a. Before wages can be administratively garnished, however, the guarantor, or its agent, must give the debtor at least thirty days’ notice.”
— 20 U.S.C. § 1095a(a)(8) — 1 case
Valgene Sutherland v. Red Bull Distrib., 623 F. App'x 370 (9th Cir. 2015).
— 20 U.S.C. § 1095a(a)(l) — 4 cases
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
United Student Aid Funds, Inc. v. South Carolina Dep't of Health, 588 S.E.2d 599 (S.C. 2003). “20 U.S.C.A. § 1095a(a). Under the Act, a guaranty agency may issue a withholding order requiring a defaulted borrower’s employer to withhold 10% of the borrower’s disposable income until the debt is paid.”
Educ. Credit Mgmt. Corp. v. Cent. Equip. Co., 477 F. Supp. 2d 788 (E.D. Ky. 2007). “S7291-02, S7369; 20 U.S.C. § 1095a. The legislative history reflects that the amendments would “provide a uniform authority under which the Secretary and guaranty agencies could garnish the pay of student loan defaulters,” allow the Secretary to pursue loans administratively…”
Green v. Kentucky Higher Educ. Assistance Auth., 78 F. Supp. 2d 1259 (S.D. Ala. 1999). “Plaintiff Bernadette Green brought this civil action seeking declaratory and injunctive relief with respect to an administrative wage garnishment imposed by defendant Kentucky Higher Education Assistance Authority (KHEAA) pursuant to 20 U.S.C. § 1095a. 2. Ms. Green was an…”
— 20 U.S.C. § 1095a(b) — 5 cases
Educ. Credit Mgmt. Corp. v. Optimum Welding, 285 F.R.D. 371 (D. Maryland 2012). “Analysis Taking as true the allegations of the complaint, ECMC has established compliance with the procedures set forth in 20 U.S.C. § 1095a(a). There is a deficiency of proof, however, with regard to the borrower’s employment status.”
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
Savage v. Scales, 310 F. Supp. 2d 122 (D.D.C. 2004). “Whether 20 U.S.C. § 1095a’s Garnishment Procedures Violated Plaintiffs Due Process Rights Although not asserted with perfection, plaintiff alleges that his wages were garnished without notice, which violated his due process rights.”
Green v. Kentucky Higher Educ. Assistance Auth., 78 F. Supp. 2d 1259 (S.D. Ala. 1999). “Plaintiff Bernadette Green brought this civil action seeking declaratory and injunctive relief with respect to an administrative wage garnishment imposed by defendant Kentucky Higher Education Assistance Authority (KHEAA) pursuant to 20 U.S.C. § 1095a. 2. Ms. Green was an…”
Nicholas v. Alltran Educ., Inc (N.D. Ill. 2019).
— 20 U.S.C. § 1095a(c) — 2 cases
Nicholas v. Alltran Educ., Inc (N.D. Ill. 2019).
Educ. Credit Mgmt. Corp. v. Tkd Auto., Inc. (M.D.N.C. 2020).
— 20 U.S.C. § 1095a(d) — 8 cases
In re Likins, 505 B.R. 319 (Bankr. D. Kan. 2014).
Jeffrey Crider v. Christina Crider, 15 N.E.3d 1042 (Ind. Ct. App. 2014).
Benn v. Cole (In Re Benn), 340 B.R. 905 (8th Cir. BAP 2006).
United States v. George, 144 F. Supp. 2d 161 (E.D.N.Y 2001).
Nelson v. Diversified Collection Servs., Inc., 961 F. Supp. 863 (D. Maryland 1997). “Defendants argue that the Maryland statutes do not apply to administrative garnishment pursuant to 20 U.S.C. § 1095a, and that their actions did not violate Ms.”
— 20 U.S.C. § 1095a(e) — 2 cases
Educ. Credit Mgmt. Corp. v. Optimum Welding, 285 F.R.D. 371 (D. Maryland 2012). “Analysis Taking as true the allegations of the complaint, ECMC has established compliance with the procedures set forth in 20 U.S.C. § 1095a(a). There is a deficiency of proof, however, with regard to the borrower’s employment status.”
Mary Ann Harter v. Rod Paige, 130 F. App'x 69 (8th Cir. 2005).
— 20 U.S.C. § 1095a(l) — 1 case
Green v. Kentucky Higher Educ. Assistance Auth., 78 F. Supp. 2d 1259 (S.D. Ala. 1999). “Plaintiff Bernadette Green brought this civil action seeking declaratory and injunctive relief with respect to an administrative wage garnishment imposed by defendant Kentucky Higher Education Assistance Authority (KHEAA) pursuant to 20 U.S.C. § 1095a. 2. Ms. Green was an…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.