Student Loans

The government can mandate the garnishment of an employee's wages in order to pay back the overdue portion of an outstanding student loan. Garnishment orders can be issued either by the Department of Education or a state guarantee agency, depending on which is guaranteeing the loan. Upon receipt of the order, the employer must give an employee 30 days notice prior to making deductions from his or her wages. An employee cannot be fired from work because of the garnishment order; an employer that does so is liable for the employee's lost wages. Also, if an employer neglects to withhold the authorized garnishment amount, it is liable for the amount that was not withheld.