Marlene Mitten Garnishment Manager Hewitt Associates

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Student Loans & Federal Agency - Debt Collections HEA – Higher Education Act of 1991 – for payment of delinquent loans DCA – Debt Collection Improvement Act of 1996 – allows federal govt agencies that provide (non-tax) funds to individuals to garnish for nonpayment (including student loans from the US Department of Education) HEA’s and DCA’s generally withhold 15% of disposable – CCPA limits apply DCA’s definition of disposable includes health insurance
Student loan collections Student loan garnishments have restrictions: • No more than the lesser of 15% of disposable income or 30 times federal hourly minimum wage • If more than one student loan garnishment received, total garnished amount is the lesser of 25% of disposable income or 30 times federal hourly minimum wage • Employee cannot be terminated because of garnishment • Employer should continue to withhold until a release is received • Notify agency if employee terminates employment
Page 1 and 2: Marlene Mitten Garnishment Manager
Page 3 and 4: Two Types of Garnishments Involunta
Page 5 and 6: Involuntary Deductions Mandated by
Page 7 and 8: Recordkeeping & Tracking Log garni
Page 9 and 10: Federal tax levy Tax Levies • For
Page 11 and 12: Tax levies Only deductions in effe
Page 13 and 14: IRS Publication 1494 - 2010
Page 15 and 16: Tax levies • Employer should not
Page 17 and 18: Creditor garnishments Wage garnish
Page 19 and 20: Creditor Garnishments State Regula
Page 21 and 22: Creditor Garnishments - Example 1
Page 23 and 24: Creditor Garnishments QUESTIONS ?
Page 25: Bankruptcy QUESTIONS ?
Page 29 and 30: Student Loans & Federal Agency - De
Page 31 and 32: Federal Wage Hour Law Restrictions
Page 33 and 34: • Garnishments & Wage assignments
Page 35 and 36: Federal Wage Hour Law Restrictions

Marlene Mitten Garnishment Manager Hewitt Associates

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