I have a student loan….i went thru the rehab program last year…i couldn’t agree with nco on a set payment of 115.00 a month they said to low…they sent paperwork to my job for garnishment…my question is this the garnishment was sent from ecmc letterhead in re: nco financial for garnishment..i was told by a lawyer (for advise only) that they needed a court order to sue me..can they can send paperwork to my employer without a court order.
I’m afraid to tell you, the attorney appears to be incorrect. Government backed student loans can garnish your wages without having to get a judgment in court.
Under the Higher Education Act, the Department and guaranty agencies may require employers who employ individuals who have defaulted on the repayment of a student loan to deduct 15% of the borrower’s disposable pay per pay period toward repayment of the debt. Also, the Debt Collection Improvement Act of 1996 permits the Department to garnish up to 15% of disposable pay. Garnishment may continue until the entire balance of the outstanding loan is paid. You should note that wage garnishment is used only for borrowers who refuse to voluntarily repay their defaulted loan and is not used with those borrowers who continue to make regular and timely monthly payments.
The Department of Education or a guaranty agency must notify you before the garnishment. You must be given the opportunity for a hearing to challenge the existence or amount of the debt and the terms of the repayment schedule. The garnishment cannot go forward if you request a hearing within 30 days of the receipt of the notice. If you request a hearing after that date, the garnishment will usually begin, but you can still stop it later if you win your hearing.
Administrative wage garnishments for government student loans are handled by the state guaranty agency that is servicing the loan. Since you mentioned ECMC that leads me to believe that you live or lived in Oregon.
ECMC is an approved guaranty agency and is a private, non-profit corporations designated to administer the Federal Family Education Loan Program (FFELP)..
Educational Credit Management Corporation (Oregon)
1500 Valley River Drive
Eugene, OR 97401
Phone: (541) 984-2450
Toll-Free: (888) 323-3262
Fax: (541) 984-2468
TTY: (541) 984-2469
Email: firstname.lastname@example.org or email@example.com
As the borrower you have the right to:
To avoid garnishment of 15% of disposable pay, the borrower must:
You can request a hearing by completing this form and sending it to:
U.S. Department of Education
Chicago Service Center
Attn: Hearings Branch
P. O. Box 617547
Chicago, Illinois 60661-7763
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