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Student Loan and Other Federal Administrative Wage Garnishment - Webinar

  • ID: 4022105
  • Webinar
  • January 2017
  • 60 Minutes
  • Online Compliance Panel
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Employers receive many types of wage garnishments they must handle. One of those types is an "Administrative Wage Garnishment" used to collect for debts owed for student loans or debts owed to a number of federal agencies. There are two different federal laws that govern some or all of these debts and it is up to the employer to understand which law must be applied. Some employees may be subject to two different types at the same time. This presentation will provide tips for how to identify which law must be applied and an end to end procedure for handling each of these two laws, the Higher Education Act and the Debt Collection Improvement Act.

Things keep changing in the garnishment world every time you think you have a grasp on how to handle them. Think you know the withholding limit? Blink and it may change. What to watch for during the economy crunch:

- Learn the primary differences between the Higher Education Act and the Debt Collection Improvement Act when handling student loans
- Learn the amount to withhold for a single student loan and when the employee is subject to two different student loans
- Find out about different withholding limits rates recently legislated in some states
- Learn how to determine the PRIORITY of a student loan or a federal administrative wage garnishment (AWG)
- Learn how to recognize a federal administrative wage garnishment
- Discover how to easily identify if a garnishment is from a state guaranty agency or from the Department of Education
- Find out what other federal agencies issue AWG's besides ED
- Discover where to validate the companies ED uses to collect delinquent student loans
- Hear about collection issues that ED is reviewing
- Follow along with easy to understand examples of how to calculate deductions based on the applicable law source
- Learn how to withhold for a student loan when other types of wage attachments are involved
- Learn your obligation when an employee terminates
- Learn about conflicting instructions found at the federal level
- Find out what types of issues your peers are encountering
- Want to collect a fee? Find out which states allow a fee for withholding student loans

Objectives of the Presentation:

- Learn the primary differences between the Higher Education Act and the Debt Collection Improvement Act when handling student loans
- Learn how to calculate disposable earnings following the HEA law
- Learn how to calculate disposable earnings following the DCIA law
- Learn how to identify the PRIORITY of a student loan or a federal administrative wage garnishment (AWG)
- Learn how to calculate withholding when multiple garnishments are received or are already in place
- Learn other employer requirements for handling garnishments issued by federal agencies and those issued by guaranty agencies
- Learn which other federal agencies collect for debts using DCIA legislation

Why Should you Attend:

There are two different federal laws that authorize garnishment of delinquent student loans. One of those laws also provides for garnishment of debts owed to other Federal Agencies. Employers receive both types of garnishment and could even receive both types for the same employee. There is a significant difference in how disposable earnings is calculated depending on which law applies. There is a difference in the forms that are received and where the payments must be sent. It is critical that employers understand each of these two laws and how to correctly administer and withhold for each of these debts. Guaranty Agencies are partners of the US Department of Education and issue garnishments using the laws in the Higher Education Act. The law that governs the Debt Collection Improvement Act allows the US Department of Education and all other federal agencies to issue wage garnishments to collect debts owed to those agencies. The rules are the same for all garnishments issued under the DCIA, the only differences being the name of the issuing agency and where the deduction is paid. The latest federal agency to adopt collection through DCIA is the US Department of Labor. ED uses the DCIA legislation to collect delinquent student loans and no longer issues garnishments using HEA laws.

Areas Covered:

- Discover how to easily identify if a garnishment is from a state guaranty agency or from the Department of Education
- Find out what other federal agencies issue AWG's besides ED
- Discover where to validate the companies ED uses to collect delinquent student loans
- Follow along with easy to understand examples of how to calculate deductions based on the applicable law source
- Learn how to withhold for a student loan when other types of wage attachments are involved.
- Learn your obligation when an employee terminates
- Learn about conflicting instructions found at the federal level
- Want to collect a fee? Find out which states allow a fee for withholding student loans

Topic Background:

Student loan debt is a subject of national and local interest. Legislators are looking at different ways to handle student loan debts including more complicated deduction calculation methods, but for now employers primarily have two different laws for collecting debts owed for student loans and one law when collecting debts owed to federal agencies, including the Department of Education. About 5% of the total garnishments, support orders and tax levies that employers withhold are for student loans and federal non tax debts. This percentage increases as more federal agencies file to use DCIA laws to collect debts. The most recent being the US Department of Labor. As a result employers must administer a wide variety of debt collections and follow the correct law(s) that apply to each type of debt.
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  • Amorette Nelson Bryant Amorette Nelson Bryant,
    Principal ,
    ABryant Consulting


    Amorette (Amy) Nelson Bryant is recognized as a Wage Garnishment Subject Matter Expert within the payroll industry. Her writing career began in 1996 when she was asked by the federal Office of Child Support to assist with developing employer training materials following Welfare Reform Legislation. In that capacity she co-authored the 'Child Support Desktop Guide' published by the federal Office of Management and Budget (out of print).That led to writing the Complete 'Guide to Federal and State Garnishment', Aspen Publishers, a book which covers all aspects of federal and state garnishment laws and requirements and is updated each year. She is also a contributor to other Aspen publications.

    As a consultant she provides staff training, develops department procedures and provides research for large employers, small employers, third party processors and software vendors. Amy is a member of the American Payroll Association and participates in several Government Affairs Task Force Subcommittees. She twice chaired and remains an active member of the GRTF Child Support and Other Garnishment Subcommittees. She served as an Observer to the Uniform Law Commission (ULC) drafting committee which wrote the Uniform Wage Garnishment Act and served as an Advisor to the ULC which updated the Uniform Interstate Family Support Act of 1996. She also creates and conducts webinars for employers and nationally recognized companies that support the payroll industry.

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  • Payroll/Garnishment managers and staff of US payrolls
  • Accounts Payable managers and staff making payments, for work performed, to US non-employees
  • Third party payroll processors that calculate payroll for persons working in the US
  • Persons responsible for writing specifications for withholding garnishments from wages paid to persons working in the US
  • Persons responsible for programming requirements for withholding garnishments from persons working in the US
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