Administrative Wage Garnishment

If you fail to voluntarily establish a repayment agreement on your defaulted student loan, EdFund may resort to Administrative Wage Garnishment. Your employer would then be required to deduct 15 percent of your disposable pay every pay period, and send it to EdFund as a loan payment, until your entire balance has been paid off. (Your employer would have to forward payments to EdFund a minimum of once every 30 days.)

By law, your employer would not be allowed to fire you or take any sort of adverse action against you for having your wages garnished.

Prior to initiation of wage garnishment

You would be notified by EdFund, in writing, of our intent to take part of your wages as loan payments. If you receive a Notice Prior to Wage Withholding, here’s what you would need to do within 30 days of the notice to avoid garnishment:

• Establish an acceptable repayment agreement with EdFund.
• Make your first payment.

After initiation of wage garnishment

You still have options. For example, if you establish an acceptable repayment agreement with EdFund, garnishment could be suspended.