Bill > S1764

This bill seeks to suspend and reform the Department of Education's administrative wage garnishment program for student loans by implementing several key provisions. The bill temporarily suspends the Secretary of Education's authority to garnish disposable pay (wages after mandatory deductions) of student loan borrowers until the Secretary submits a detailed certification to congressional committees. This certification must demonstrate either the implementation of a robust process for handling garnishment or a determination that garnishment should not apply. If the process is implemented, the Secretary must establish a centralized database tracking demographic information of affected borrowers and submit regular reports to Congress. The bill introduces significant borrower protections, including requiring employers to verify garnishment information quarterly, allowing the Secretary to independently suspend garnishment for individual or groups of borrowers, and mandating that improperly garnished wages be returned within one week. Additionally, the bill creates legal recourse for borrowers by allowing them to sue employers for improper wage withholding and requires the Department to pay borrowers double the amount of improperly garnished wages. The bill also limits administrative wage garnishment to loans outstanding for 10 years or less, providing a meaningful constraint on long-term collection practices.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/1764/all-info