Administrative Wage Garnishment
ACSI understands the limitations for using administrative wage garnishment to collect defaulted federal student loans and has the knowledge and expertise to appropriately use this last-resort tool.
Administrative Wage Garnishment (AWG) as an option to collect on defaulted federal student loans is only available to the U.S. Department of Education and its authorized loan guarantors/servicers. ACSI considers AWG the last option for collecting defaulted federal loans when student borrowers have the means to repay their defaulted student loans but refuse to do so voluntarily throughout the regular collections process as described here
. Our AWG services include:
- Student Borrower Employment - ACSI identifies student borrowers’ employment through information brokerages, online resources, and via disclosure by student borrowers. Once employment is identified, ACSI verifies all employment information available, including employer payroll addresses, before requesting approval from our clients to pursue AWG.
- Notice Prior to Wage Withholding - ACSI sends student borrowers for whom we have been authorized to pursue AWG a Notice Prior to Wage Withholding. This notice advises student borrowers of their options to respond to the notice: request a voluntary payment arrangement, request additional documentation, or request a hearing in dispute of the debts. It also informs student borrowers of their deadline for responding to the notice and that AWG is an option for recovering the loan debts owed.
- First and Second Orders of Withholding from Earnings - If student borrowers fail to respond to the Notice Prior to Wage Withholding, then ACSI requests approval to send the first Order of Withholding from Earnings to student borrowers’ employers. If employers do not respond the first Order, ACSI sends a second order and subsequently calls employers as follow-up.
- Employer Non-Compliance - If employers do not respond to the second Order, then we send them a Failure to Comply letter with the second Order attached and advise them of our clients’ right to take legal action against them for non-compliance. We also make a follow-up call to employers. If employers still refuse to comply with the Order, then we forward those accounts to our clients along with all supporting documentation should they elect to pursue litigation against those employers.
- Other Student Borrower Garnishments - If ACSI discovers student borrowers already have established garnishment orders in place, then ACSI evaluates the extent of those garnishments relative to the viability of continuing to pursue AWG and submits our recommendations to our clients for review and direction.
- Monitoring Payments - ACSI monitors all payments made via AWG and follow up with borrowers to offer rehabilitation as a method of resolution. Missed payments are followed up via telephone calls. If student borrowers leave their employment, then ACSI attempts voluntarily resolution and also begins the process again by attempting to locate their new employers.
- Release of Order from Earnings - Once student borrowers have paid their defaulted loan balances in full, ACSI sends a Release of Order from Earnings to their employers as notice that garnishment has been fulfilled. These accounts are then closed and returned to our clients.