My Sister's Debt

[samaielo]

What is the name of your state? California.

My sister went to Andon College in Stockton California for medical admin schooling back in 08/14/2002. She apparently went through the department of education, and a private debt servicing these schools called Direct Loan Servicing. She never finished the classes, had hardship and moved 90 miles away a few months into the course. She now is getting harassing phone calls on her cell and at her work threating to garnish her tiny wages from "Allied Interstate" collection agency. She can barelly make her rent, and we want to know if they "Allied Interstate" can actually garnish someones wages.... She has no assets, no home ownership, and old car, just enough money to live on and pay rent. I thought only the IRS and court ordered judgements can garnish wages. Please help.

Sam

[moburkes]

Originally Posted by samaielo

What is the name of your state? ca

Interesting question.

[JETX]

Originally Posted by samaielo

She now is getting harassing phone calls on her cell and at her work threating to garnish her tiny wages from "Allied Interstate" collection agency. She can barelly make her rent, and we want to know if they "Allied Interstate" can actually garnish someones wages.... She has no assets, no home ownership, and old car, just enough money to live on and pay rent. I thought only the IRS and court ordered judgements can garnish wages.

Clearly, you 'thought' wrong.

The Higher Education Act, (20 U.S.C. § 1095a) authorizes the U. S. Department of Education as well as student loan guaranty agencies to collect defaulted Federally-financed student loans by means of an administrative order to the employer, and without the need for a court order. This order requires the employer to withhold and pay over to ED or the guarantor up to 15% of the debtor's disposable pay. This Federal law supersedes any state law governing wage garnishment.