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 (


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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