OSPS E-News ~ Student Loan Wage Attachments

[osps-news at listsmart.osl.state.or.us]

It has been brought to our attention by Judy Simmons, Payroll Officer at the
Department of Environmental Quality in Portland, that there are some recent
changes to the maximum percentages of disposable income that can be withheld
for a Student Loan Wage Attachment. 

 

The maximum percentage to withhold has been changed to not exceed 15% of
disposable income. The U.S. Department of Education Office informed Judy
that they have been issuing garnishments to not exceed 15% of disposable pay
for Federal Employers since April 1996.  The Department just recently
increased the amount from 10% to not exceed 15% of the disposable income for
Employers other than Federal Government.  

 

We have contacted Keith Smothers with Statewide Accounts Receivable to
verify this information.  He has sited the U. S. Code 31 Sec. 3720D as being
the reference for this change to 15% of disposable income as being the
maximum to withhold for a Student Loan Wage Attachment.  

 

We have hard copies of the U.S. Code 31 Sec 3720D available if you wish to
have a copy, or you can go to their website at:

 

http://uscode.house.gov/usc.htm <http://uscode.house.gov/usc.htm> 

 

This link will take you to a search engine. In the Word Search field type:
Student Loan Wage Attachment.  In the Section field type:  3720D

 

Thanks to DEQ Payroll for bringing this information to OSPS.  

 

 

 

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