H.R.3412 - Ending Administrative Garnishment Act of 2025 (119th Congress)
Summary
H.R.3412, the Ending Administrative Garnishment Act of 2025, aims to suspend and reform the Department of Education's authority to garnish wages for defaulted student loans. The bill requires the Secretary of Education to certify that processes are in place to prevent improper garnishments and provide swift refunds before the suspension is lifted. It also mandates data collection and reporting on individuals subject to wage garnishment.
Expected Effects
The immediate effect would be a temporary halt to administrative wage garnishment for student loan defaults. This pause would remain until the Secretary of Education certifies the implementation of specific safeguards and reporting mechanisms. The bill also introduces potential liability for employers who improperly withhold wages after receiving notice of suspension or revocation of a garnishment order.
Potential Benefits
- Provides immediate financial relief to individuals facing wage garnishment for student loan defaults.
- Improves accuracy and fairness in the wage garnishment process through required certifications and data collection.
- Establishes employer liability for improper wage withholding, protecting employees' rights.
- Creates a centralized database to monitor and evaluate the wage garnishment program's impact.
- Limits garnishment on loans outstanding for more than 10 years.
Potential Disadvantages
- The suspension of wage garnishment could temporarily reduce the repayment rate on student loans.
- The certification process may create bureaucratic hurdles and delay the resumption of wage garnishment.
- Increased employer liability could lead to reluctance to participate in wage garnishment programs.
- The establishment and maintenance of the centralized database could pose privacy concerns.
- The 10-year limit on garnishment could create a loophole for borrowers to avoid repayment.
Constitutional Alignment
The bill appears to align with the Constitution, as it addresses the due process rights of individuals subject to wage garnishment. While the Constitution does not explicitly address student loan debt, the Fifth Amendment guarantees due process, which includes fair procedures and protections against arbitrary government actions. The bill's provisions for certification, data collection, and employer liability aim to ensure a more transparent and accountable garnishment process, supporting due process.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).