Federal / IRS
Administrative Wage Garnishment (AWG) for Federal Student Loans
Department of Education and guaranty agencies reissue AWG withholding orders following the conclusion of pandemic relief extensions.
Employers are receiving new Administrative Wage Garnishment (AWG) directives from the Department of Education. Under the Higher Education Act, employers must withhold up to 15% of disposable pay per order, not to exceed a combined 25% for multiple student loan orders. Orders require prompt acknowledgement within 20 days to prevent institutional liability.
Employer Compliance Checklist:
- Verify whether current employees operate, reside, or have active writs in this jurisdiction.
- Audit HCM wage deduction caps to guarantee alignment with shifting disposable pay exemptions.
- Connect State Disbursement Units to the Federal e-IWO portal to eliminate 10-day postal mail lag.
Published by Global Pay Compliance Desk (Minneapolis)
Speak with a Garnishment Specialist →