The APA Government Relations Task Force wrote to the U.S. Department of Education’s (ED) Chief Operating Officer, Federal Student Aid Office, Richard Cordray in November about the management of involuntary federal student loan payments that are currently suspended. “The APA supports the Biden Administration’s efforts to provide borrowers with relief; however, we are concerned about the administration of these loans for individuals ineligible for relief, specifically related to orders for employers/payors to withhold from employees’ wages,” APA said.
Top Concerns
The APA’s concerns center around three specific items related to the restart of involuntary student loan payments:
- Employers should be provided with early communication related to when new payment orders will start.
- Following the end of the forgiveness period, employers will require a new order if student loan garnishments are to resume.
- The payment address must be clearly communicated on new orders.
The combination of COVID-19 student loan relief and the Biden Administration’s efforts to provide permanent relief has led to lawsuits. While the ED has communicated with borrowers, no outreach was given to employers, leaving payroll professionals in limbo on how and when to prepare for employees’ federal student loan wage garnishments.
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Alice P. Jacobsohn, Esq., is Director of Government Relations for the APA.
