Wage Garnishment
Employer Wage Withholding Information
This is a brief summary of the Administrative Wage Garnishment (“AWG”) process. ”Garnishment” is the withholding of a portion of an individual’s earnings by his employer to be applied to a debt owed by the individual. The amount withheld from earnings is sent by the employer to the employee’s creditor to be applied to the outstanding debt.
One of the methods by which the Oklahoma Guaranteed Student Loan Program collects payment on those FFELP loans that go into default is through AWG, which permits garnishment without a court order. A Federal statute (20 USC 1095a et. seq.) allows Student Loan Guarantors such as OGSLP to garnish up to 15% of a defaulted borrower’s disposable pay until the loan debt is paid in full. “Disposable pay” means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by law to be withheld.
A minimum of thirty days prior to any garnishment, the borrower is notified of the agency’s intention to garnish wages. The borrower is given an opportunity to review the Oklahoma Guaranteed Student Loan Program’s records relating to the debt; to resolve the debt voluntarily and to have a hearing concerning the debt.
If a hearing is held it will be conducted by an administrative law judge and may be in-person, by telephone or in writing at the borrower’s election.
For more information please read the instructions and information contained in the forms and the frequently asked questions for employers appearing below. If you have questions, please contact our AWG Unit in the Recoveries department at 800.777.3394 and local at 405.225.9204 or email at: awginfo@osrhe.edu
Borrower Forms:
Wage Withholding Reduction Request Form (PDF)
Financial Disclosure Form & Borrower Checklist (PDF)
Request for Hearing Form (PDF)
Employer Information & Forms:
Employer Wage Withholding Instructions
Frequently Asked Questions (FAQ)
Employer Notice of Change in Employment Form (PDF)