Student loan garnishment -- employer not making payments

How do you know they are not being sent in??


From finaid employer handbook...they must submit the funds within 3 days of withholding it from your check. Interest will continue to accrue and unless you are being garnished enough to cover the monthly interest charge your balance will not go down. http://www.ed.gov/offices/OSFAP/DCS/Employers_Handbook.pdf
You are further ORDERED to pay the Creditor Agency all Wage Garnishment Amounts deducted by you under this order within three (3) business days of the withholding. Employers are encouraged to make payments electronically, if possible as follows

Thanks for responding. I know that they're not being sent in per the CA who I was dealing with -- I've called them a couple of times in the last few months sort of "checking" on the balance, etc. I was considering doing a Depart of Ed hearing to get the payment lowered but wasn't sure what I would do. I was then informed of where the payments were at that time -- and of course realized that things were way behind. Now I mean thousands behind. Plus, there's interest, and fees of course that have accumulated while they're not sending in the payments. They lady at the CA told me that had those payments been sent in timely I'd be almost done now.

Check with your employer first to see if they have been sent in...that would be the another step. Maybe there is problem at their end. FYI....they cannot retaliate for you reporting them!!!

Thanks so much for talking to me the other night. I really appreciate your help. My employer has started to send in the payments -- they were approx $3300 behind; sent a check on Friday for $2200 -- but I haven't approached them yet about the interest and fees that have accumulated on the account. I actually added it up -- its over $2200 in 2 1/2 years!!! They put on collection fees like once a month or so for different amounts. I thought I remember seeing something like the CF should only be 25% and only a one-time thing.

Confused, wondered what you thought.

Again, thanks so much for your help!!!

Abby :)

No problem!! I was wondering how things were turning out. I hope that you did contact the ombudsman.

FYI....the OP as it turns out works literally blocks from my home. Small world!!!

What's the OP? Just curious.

It is a small world for sure!!!! I was telling another friend that I found you on line and that you weren't too far from my work in Bloomington.

I was going to contact the ombudsman next week. I wanted to get together the interest/fee information and present it to my employer. I'm still going to have to continue to get this till they are current. They're paying it -- I'm NOT. I'm just waiting to see what they say.

They did change the $ of the garnishment, but I guess its only going to be different (in my favor) by $5. Whoopeee. The insurance alone has gone up $25 since this started. I have the tabulation sheet at home and I was going to double check their figures. They said something about the federal minimum wage? I thought what the heck does that have to do with anything?

Its still a mess but thanks again for your help. I'll talk to you soon.

Abby :) (mn55122)

OP means original poster, which is you :)

Hello out there...... just a quick update.... I "checked" on all these promises my employer made me..... hasn't happened yet. I get the ..... oh the mail is slow.... there is the holiday (Thanksgiving). The payment to the SL was sent on 11/24 and it is now 12/11.

I was able to send a package to my son when he was in Iraq faster than that. I'm pretty sure they haven't sent it in and I'm still screwed.

Still haven't contacted the ombudsman, probably that's my next step.

You need to call the ombudsman ASAP...this is costing you money everyday. Your employer is basically stealling your wages. We our agency handled garnishments, they posted the day they came in.

Gosh...sound like YES..............your employer MAY BE stealing your money. What a horrible thing to do. Is there anyone else ( like 'your' Finance Department) where you can check? Where do you work, MN?

SD...I have spoken with the OP...her office is down the street from where I live. She is under federal garnishment and her employer is not submitting the funds within the 3 day period required under the administrative wage garnishment program. Personally I am surprised that the CA has not followed up on this...the OP needs to get the ombudsman to intervene. Unfortuantely she works for a small company....but even then the employer may not fire her for reporting this disgression. I am thinking that the OP may need to speak with an attorney....thankfully I know a great one locally!!

Well..........keep checking on it. Sounds like you're 'on your way'..LOL Keep 'us' updated, please. I'd like to know the 'results' you come up with. Thanks.

Hi everyone. Its been a real mess here. There are actually two things going on here.... First the student loan. There was one payment made per my last post for $2200 or so (of the original well over $3000 in arrears, not even including interest. That payment posted the "day" after I posted here last. Interesting, eh? My thought is they held onto the check till I started complaining again the week of 12/8.

Well, its now 12/29 and the original "promise" to me was that it would be cleared up at the end of the year. Its never going to happen. I asked them today whats going on as since I "figured" this whole thing out I've made an additional $500 in payments in the last 1 1/2 months that have also NOT been sent to them.

My next step is to the Omnbudsman person. I have the information at home, but I've been a bit busy with my daughter who is starting college in January and of course the holidays. That is definitely next on the list.

Essentially it is that they have "stolen" my money. I don't know why the CA doesn't do anything, they've been fully informed that this is going on. They tell me that I should be okay as I have my pay stubs that show that they took the $ out, etc.

I actually think the business is going to fold soon. We've had some subtle hints, but I'm not sure.

Anyhow, I'll keep everybody updated. Thanks for your support!

Abby (mn4130)