A collection agency named Allied

Your wages can be garnished for government loans, child support, etc., even in non-garnishment states. However, get a copy of the letter sent to your boss. They broke the law if they claimed to be "an agent of the government". allied interstate is just a collection agency. It would be interesting to see the forms they sent as well.

I think it would also be a third party disclosure incident. If they are going to garnish your wages I think they still must get a court order or the department of education would need to go through their channels to setup garnishment. I'm pretty sure they still need to abide by the fdcpa and stay from disclosing the fact that you owe a debt to any 3rd party.

Allied functions as a agent of the US Deptarment of Education. The administrative wage garnishment letter they sent is authorized by the DOE to garnish on their behalf. Definately not third party disclosure.

No court order is required as this is authorized by Congress. Since your employer has received this notice, I would have to assume that your failed to respond to the 30 day garnishment notice they sent you. By law, your employer MUST deduct 15% of your disposable pay,

From the DOE site.

[quote]Employer Compliance is Mandatory!
Employers can help keep taxpayers???????? cost down for the student loan programs by complying with these wage garnishment procedures. Federal law provides penalties for non-compliance with the Order and for retaliation against employees who are subject to adverse action on account of an Order.
Federal law provides that the employer is liable for any amount that should have been withheld pursuant to an Order, and authorizes the United States to the employer to recover the amount not withheld, together with attorney????????s fees, costs and, in the court????????s discretion, punitive damages. 31 U.S.C. ???? 3720D(f)(2). Federal law further bars an employer from discharging, refusing to employ, or taking disciplinary action against an individual on the ground that the individual is subject to garnishment by ED. 31 U.S.C. ???? 3720D(e)(1). The law authorizes an individual subject to such action by an employer to sue the employer and, if he or she prevails, recover attorney????????s fees and, in it????????s the court????????s discretion, receive reinstatement, punitive damages and back pay. 31 U.S.C. ???? 3720D(e)(1).
Termination of the debtor????????s employment after you receive the Order does not end your responsibility under the order; the Order applies to any amounts you are obligated to withhold from compensation payable after termination to the debtor, and the employer remains liable for amounts[/quote]
You have to understand that you must repay your student loan. Failure to voluntarily make payments as you have now seen, results in wage garnishment.