When the Department of Education (DOE) announced it would temporarily delay administrative wage garnishment (AWG) in January, many workers and employers sighed with relief. The delay gives organizations and borrowers more time to plan before it affects payroll. But AWG is still coming.
Once AWG resumes, the government will be able to seize up to 15% of a borrower’s disposable pay without a court order by directing employers to withhold wages directly from paychecks. This enforcement comes against the backdrop of a broader reset of the student loan system as borrower protections and repayment rules are expected to change.
