AWG / Subrogation
Administrative Wage Garnishment (AWG) is a debt collection process, which allows a federal agency to order non-federal employers (i.e. private entities) to withhold up to 15% of an employee’s disposable income for the payment of a nontax delinquent debt owed to the agency. The fulfillment of this process can be complex; it requires time and expertise in the field.
Here is an employer’s to-do list once an AWG order from a federal agency has been received:
1. Verify an employee’s’ employment
2. Complete and return the applicable forms, which include: Wage Garnishment Worksheet (SF-329C) and Employer Certification (SF-329D).
3. Deduct the wage garnishment amount from the employee’s wages on the first payday after receipt of the order.
4. Continue deductions until an employer receives notification from the creditor agency to suspend or discontinue deductions.
5. Send withheld monies to the address listed in the wage garnishment order within 3 days of withholding.
Source: Administrative Wage Garnishment: A Guide for Employer (fiscal.treasury.gov)
Leveraging FAMS’ Expertise
FAMS can help you in every step of the way. Our team knows the intricacies of the process involving AWG. You can rest assured that when you let us work for you, every thing will be taken care of.
Guaranty agencies can take advantage of FAMS’ extensive experience with AWG processes to garnish borrowers’ wages and boost recoveries.
FAMS also offers a Pre-Subrogation Program that locates, contacts and provides borrowers one last opportunity to resolve their defaulted loan(s) prior to assignment to the U.S. Department of Education. Additionally, FAMS can prepare eligible accounts for Mandatory Assignment to the Department of Education.
To guarantee your AWG or Pre-Subrogation success, contact FAMS at (404) 293-7639.
Click here to download Wage Withholding For Defaulted Student Loans—A Handbook For Employers.
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FAMS is an amazing company to work for. The leadership and staff at FAMS has treated me like family from day one. The best part of FAMS is that they care about you and your success. I started as a collection specialist and was promoted to the Accounting Department family. Thanks FAMS!
I'm happy to be at FAMS, simply because of the support system everyone has a willingness to help! Real Team players! I came in feeling like the new girl, left feeling like a part of the family! Thank you FAMS! I love it here!
I am happy to be at FAMS because of the management team I work for in St. Charles. Mike and all the management staff have been very supportive over my time here. One of my favorite things is that while I have been at FAMS, I have been able to use my bonus checks to purchase my own home.
When FAMS was the only agency to hit their Student Loan goal for the month of September, I received an appreciative e-mail from Jerry Hogan. It was a great feeling to know the owner of the company took the time to send an email telling us we did a good job.