 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1095a. Wage garnishment requirement


(a) Garnishment requirements

    Notwithstanding any provision of State law, a guaranty agency, or 
the Secretary in the case of loans made, insured or guaranteed under 
this subchapter and part C of subchapter I of chapter 34 of title 42 
that are held by the Secretary, may garnish the disposable pay of an 
individual to collect the amount owed by the individual, if he or she is 
not currently making required repayment under a repayment agreement with 
the Secretary, or, in the case of a loan guaranteed under part B of this 
subchapter on which the guaranty agency received reimbursement from the 
Secretary under section 1078(c) of this title, with the guaranty agency 
holding the loan, as appropriate, provided that--
        (1) the amount deducted for any pay period may not exceed 10 
    percent of disposable pay, except that a greater percentage may be 
    deducted with the written consent of the individual involved;
        (2) the individual shall be provided written notice, sent by 
    mail to the individual's last known address, a minimum of 30 days 
    prior to the initiation of proceedings, from the guaranty agency or 
    the Secretary, as appropriate, informing such individual of the 
    nature and amount of the loan obligation to be collected, the 
    intention of the guaranty agency or the Secretary, as appropriate, 
    to initiate proceedings to collect the debt through deductions from 
    pay, and an explanation of the rights of the individual under this 
    section;
        (3) the individual shall be provided an opportunity to inspect 
    and copy records relating to the debt;
        (4) the individual shall be provided an opportunity to enter 
    into a written agreement with the guaranty agency or the Secretary, 
    under terms agreeable to the Secretary, or the head of the guaranty 
    agency or his designee, as appropriate, to establish a schedule for 
    the repayment of the debt;
        (5) the individual shall be provided an opportunity for a 
    hearing in accordance with subsection (b) of this section on the 
    determination of the Secretary or the guaranty agency, as 
    appropriate, concerning the existence or the amount of the debt, 
    and, in the case of an individual whose repayment schedule is 
    established other than by a written agreement pursuant to paragraph 
    (4), concerning the terms of the repayment schedule;
        (6) the employer shall pay to the Secretary or the guaranty 
    agency as directed in the withholding order issued in this action, 
    and shall be liable for, and the Secretary or the guaranty agency, 
    as appropriate, may sue the employer in a State or Federal court of 
    competent jurisdiction to recover, any amount that such employer 
    fails to withhold from wages due an employee following receipt of 
    such employer of notice of the withholding order, plus attorneys' 
    fees, costs, and, in the court's discretion, punitive damages, but 
    such employer shall not be required to vary the normal pay and 
    disbursement cycles in order to comply with this paragraph;
        (7) if an individual has been reemployed within 12 months after 
    having been involuntarily separated from employment, no amount may 
    be deducted from the disposable pay of such individual until such 
    individual has been reemployed continuously for at least 12 months; 
    and
        (8) an employer may not discharge from employment, refuse to 
    employ, or take disciplinary action against an individual subject to 
    wage withholding in accordance with this section by reason of the 
    fact that the individual's wages have been subject to garnishment 
    under this section, and such individual may sue in a State or 
    Federal court of competent jurisdiction any employer who takes such 
    action. The court shall award attorneys' fees to a prevailing 
    employee and, in its discretion, may order reinstatement of the 
    individual, award punitive damages and back pay to the employee, or 
    order such other remedy as may be reasonably necessary.

(b) Hearing requirements

    A hearing described in subsection (a)(5) of this section shall be 
provided prior to issuance of a garnishment order if the individual, on 
or before the 15th day following the mailing of the notice described in 
subsection (a)(2) of this section, and in accordance with such 
procedures as the Secretary or the head of the guaranty agency, as 
appropriate, may prescribe, files a petition requesting such a hearing. 
If the individual does not file a petition requesting a hearing prior to 
such date, the Secretary or the guaranty agency, as appropriate, shall 
provide the individual a hearing under subsection (a)(5) of this section 
upon request, but such hearing need not be provided prior to issuance of 
a garnishment order. A hearing under subsection (a)(5) of this section 
may not be conducted by an individual under the supervision or control 
of the head of the guaranty agency, except that nothing in this sentence 
shall be construed to prohibit the appointment of an administrative law 
judge. The hearing official shall issue a final decision at the earliest 
practicable date, but not later than 60 days after the filing of the 
petition requesting the hearing.

(c) Notice requirements

    The notice to the employer of the withholding order shall contain 
only such information as may be necessary for the employer to comply 
with the withholding order.

(d) No attachment of student assistance

    Except as authorized in this section, notwithstanding any other 
provision of Federal or State law, no grant, loan, or work assistance 
awarded under this subchapter and part C of subchapter I of chapter 34 
of title 42, or property traceable to such assistance, shall be subject 
to garnishment or attachment in order to satisfy any debt owed by the 
student awarded such assistance, other than a debt owed to the Secretary 
and arising under this subchapter and part C of subchapter I of chapter 
34 of title 42.

(e) ``Disposable pay'' defined

    For the purpose of this section, the term ``disposable pay'' means 
that part of the compensation of any individual from an employer 
remaining after the deduction of any amounts required by law to be 
withheld.

(Pub. L. 89-329, title IV, Sec. 488A, as added Pub. L. 102-164, title 
VI, Sec. 605(a), Nov. 15, 1991, 105 Stat. 1066; amended Pub. L. 105-244, 
title IV, Sec. 490A, Oct. 7, 1998, 112 Stat. 1753.)


                               Amendments

    1998--Subsecs. (d), (e). Pub. L. 105-244 added subsec. (d) and 
redesignated former subsec. (d) as (e).


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1078-3 of this title.
