united-states finance debt
Student Loan from years ago pops up and is taking my salary
<p><strong>Summary</strong>: For decades I had my student loans paid by automated payment from my bank without a problem; just take it out of my bank and there's a small benefit in interest for it.  </p>

<p>Recently, my current employer showed me that there was a collections office who would take 15% of my salary and if they did not 'okay' it, there could be legal ramifications.  The office naturally had to sign it.  Now 15% of my salary is being removed by this collection agency.</p>

<p><strong>Background</strong>: This part of the Federal student loan had become part of a separate agency and as I was not paying it, it defaulted <em>two years ago</em> without any notification to me.</p>

<p>I am happy to pay for the last fifteen years, and I understand it should have been my responsibility to notice my automatic withdrawals had a different amount (?) from my set-aside account for those payments, but the surprise is sudden and with ten days notice, I've received no movement other than now my salary is being taken by a draconian amount without me signing a single thing other than the original loan in 2005ish.</p>

<p>Does this sound legally dodgy?</p>

<p>As in I should seek representation, or is this status quo and if phone and mail conversations are resulting in no change, it is something generally accepted by other people in my situation.</p>

<p>My question isn't necessarily about my employer going along with this nor about how I feel about the student loan (I of course have always endeavored to pay my debts), but whether this is a legal issue based on my summary.</p>

<p>Defaulting on student loans is—along with back taxes and child support—one of the three cases where a court order is not required for wage garnishment.</p>

<p><a href="https://www.nolo.com/legal-encyclopedia/default-student-loan-29859.html" rel="nofollow noreferrer">This article</a> spells out remedies against such defaults. For example, they can intercept your tax refund, Social Security payments, or your wage. They can take up to 15%, but not more than 30 times the federal minimum wage. So yo don't need to have signed a single thing other than the original loan agreement.</p>

<p>That does not guarantee that your particular situation is iron-clad, but it is not obviously legally improper.</p>

<p>The only way to be sure is to hire an attorney to fight the garnishment. A brief initial consultation is probably free.</p>

<p>If this is a federal student loan, I would check with the U.S. Department of Education to make sure you have any federal loans in default and what agency is servicing them.</p>

<p>If it is a case of federal loan default, there is little legal recourse other than trying to return the loan to good standing.</p>

<p><a href="https://studentaid.ed.gov/sa/repay-loans/default" rel="nofollow noreferrer">https://studentaid.ed.gov/sa/repay-loans/default</a></p>
