Administrative Wage Garnishment

If you fail to voluntarily establish a repayment agreement on your defaulted student loan, EdFund may resort to Administrative Wage Garnishment. Your employer would then be required to deduct 15 percent of your disposable pay every pay period until your entire balance has been paid off.

By law, your employer would not be allowed to fire you or take any sort of adverse action against you for having your wages garnished.

Prior to initiation of wage garnishment

You would be notified by EdFund, in writing, of our intent to take part of your wages as loan payments. If you receive a Notice Prior to Wage Withholding, here’s what you would need to do within 30 days of the notice to avoid garnishment:

• Establish an acceptable repayment agreement with EdFund.