Student Loan Wage Garnishment/Withholding

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  • Sabre
    Member
    • Jan 2010
    • 53

    #1

    Student Loan Wage Garnishment/Withholding

    One of my clients laid a question on me on the 15th which i have no experience with.

    Apparently one of his employees has not made a student loan payment in many years. My client has been contacted by a Pioneer Credit Company requesting that my client withhold from his wages. The story is a little garbled but I believe he said they represent Sallie Mae or another governmental entity.

    Does anyone have experience with this? What documents does Pioneer need to show my client? How is the withholding calculated?

    My client is a straight shooter and does everything by the book so I want to give him by the book advice.

    Any help out there would be appreciated.

    Kirk
    Sabre

    " You don't learn much from the second kick of a mule."
  • Lion
    Senior Member
    • Jun 2005
    • 4699

    #2
    Pub 15

    I'm guessing that Pub 15 or one of its series has directions on how to deal with a garnishment of wages.
    Last edited by Lion; 04-19-2010, 01:17 PM.

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    • taxdude71
      Senior Member
      • Jan 2007
      • 132

      #3
      I did one a few years back. If I remember correctly the instrucitons are right on the sheet they mail you. I think it was 20% at the time.

      Comment

      • Nashville
        Senior Member
        • Nov 2007
        • 1129

        #4
        Court Order

        Mr. Glenn, I wouldn't respond whatsoever to a collection agency. They need to get a court order from a US or State Court, and your client should not garnish unless so directed by a court or taxing authority.

        Comment

        • JohnH
          Senior Member
          • Apr 2007
          • 5339

          #5
          I agree. Not a cent to them. Give the letter to the employee and let him work it out with them. No garnishment unless it's court ordered or from a taxing authority.
          "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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