Administrative Wage Garnishment (AWG) Resolution
Get Help With Student Loan Defaults
Amongst the most misunderstood concepts of student loan default is the Administrative Wage Garnishment (AWG). Through the use of various financial strategies, our legal team can help you avoid administrative wage garnishment and resolve your student loan defaults. Our central goal is to help you obtain good standing and get back on track for a solid financial future. We have ample experience working with clients dealing with mounting student debt, and we want to help you, too.
Contact us online or call (954) 932-5377 for an in depth strategy session consultation with a student loan attorney in South Florida. We serve clients throughout Fort Lauderdale and Miami.
About Administrative Wage Garnishment & Student Loans
If you defaulted on your student loans, the Department of Education can collect past-due amounts via an administrative wage garnishment (AWG), which allows the government to garnish your paycheck without obtaining a court order first.
The government must give you written notification of the proposed garnishment and an opportunity to challenge the AWG. You typically must request a hearing within 30 days of receipt of the notice. If you fail to do so, the garnishment may proceed, but it can be halted if you are successful at your hearing.
If an AWG has already begun and no legal defenses apply, then by entering into a rehabilitation agreement and making five rehabilitation payments, the garnishment will be suspended.
How Much Can Be Garnished?
The maximum amount that can be garnished by the government is 15% of your “disposable income.” Disposable income is the amount remaining after the deductions that are required under the law are withheld. Additionally, you must be left an amount that is equal to thirty times the minimum wage.
Wage Garnishment vs. Administrative Wage Garnishment
A wage garnishment does not work the same way as an administrative wage garnishment (AWG). A wage garnishment is the involuntary deducting of money from an employee's wages to repay a debt. Usually, it cannot take place unless a creditor files a lawsuit and obtains a judgment against the person who owes the debt.
How To Avoid an AWG
The best way to avoid an AWG is to avoid default of your federal student loans in the first place. If it appears that you will not be able to keep up with your federal student loan payments or if you just started missing your payments, be proactive. There are a number of repayment options that are based on a borrower's income. Switching your repayment plan to one of those plans can avoid an imminent default.
If you already are in default of your federal student loans, there are many opportunities to get out of default, before an AWG begins. Most borrowers in default have the opportunity to get out of default by consolidating their federal student loans and then immediately selecting one of the aforementioned income-based repayment plans.
Our South Florida Student Loan Debt Attorneys Are Here
If you or someone you know are faced with an AWG of your federal student loan(s), want to avoid an AWG before it happens, or are simply overwhelmed by student loan debt, allow us to demystify your student loans and put you back in control. Please keep in mind that every student loan matter is different.
If you have an administrative wage garnishment on a student loan, contact Leiderman Shelomith Alexander + Somodevilla, PLLC online or call (954) 932-5377 to schedule an in depth strategy session.
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