Menu Locations
TMF - Law Offices of Todd M. Friedman, P.C.
Free Initial Consultations
Toll-free: TF 877-619-8966
California: CA 424-235-1148
Illinois: IL 312-292-9296
Ohio: OH 216-220-6496

Student Loans, Debt Collectors and You

Many desperate debt collectors threaten debtors with immediate wage or bank account garnishment as a tactic to intimidate them into payment.  However, it is important to know that debt collectors who threaten to garnish a consumer’s wages, without being entitled to do so are in violation of the Fair Debt Collection Practices Act (FDCPA).  Until a creditor has obtained a judgment against a debtor, the collection agency should not be making threats of garnishment.

In regards to loans issued by or guaranteed by a federal agency, the owner of the educational loan can proceed through an administrative system. The Department of Education obtains Administrative Wage Garnishments (AWG) as a last resort tool.

The Department of Education must send the borrower a notice thirty days prior to ordering wage garnishment. The notice must explain the Department of Education’s intention to garnish; the nature and amount of the debt; that the borrower has the opportunity to inspect and copy records relating to the debt; that the borrower may object to the garnishment to collect the debt; and describe garnishment by voluntary repayment.  The notice must also inform the borrower that the borrower may request a hearing to present evidence and request a ruling on any objection by the borrower to the existence, amount, or enforceability of the debt.

Borrowers who receive a notice of the Department of Education’s intent to garnish wages, still have the opportunity to enter into a written repayment agreement with the Department.

Consumers also have the opportunity to have a hearing to present that garnishment of their disposable income would produce and extreme financial hardship.

The consumer has the right to have the garnishment action withheld by filing a timely request for a hearing, until the hearing is completed and a decision issued.

Employers are prohibited from discharging debtors, refusing to employ them, or subjecting them to disciplinary action due to the garnishment.  Debtors also have the right to ask the Department of Education to provide the employer no more information than is necessary for the employer to comply with the withholding order.

If a debt collection agency is harassing you in an attempt to collect a student loan, you are welcome to contact California Consumer Protection Attorney, Todd M. Friedman at (877) 449-8898 for a free consultation.

No Comments

Leave a comment
Comment Information

When You've Had Enough, Contact Us For A Free Initial Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Get An Attorney Response

Headquartered in Beverly Hills, we accept cases throughout California, Pennsylvania, Illinois, Ohio and West Virginia

Schedule a Free Consultation:
Toll Free: 877-619-8966
| Local: 424-235-1148 |
Fax: 866-633-0228
| Email Our Firm

  • Law Offices of Todd M. Friedman, P.C.
    324 S Beverly Blvd, Suite 725
    Beverly Hills, CA 90212

    (Mailing Address Only)

  • Orange County Office
    1851 E First St, Suite 918
    Santa Ana, CA 92705
    Map & Directions

  • Woodland Hills Office
    21550 Oxnard St
    Suite 780
    Woodland Hills, CA 91367
    Map & Directions

  • King of Prussia Office
    1150 First Ave., Suite 501
    King of Prussia, PA 19406
    Map & Directions

  • Chicago Office
    333 Skokie Blvd., Suite 103
    Northbrook, IL 60062
    Phone: 312-292-9296
    Map & Directions

  • Ohio/West Virginia Office
    Fifth Third Building, 600 Superior Avenue East,
    Suite 1300, Cleveland, OH 44114
    Phone: 216-220-6496
    Map & Directions