Ending Administrative Garnishment Act of 2025

119th Congress Introduced by Ayanna Pressley

HR 3412 ends automatic wage garnishment for federal student loans, requiring court orders and protecting borrowers from undue financial hardship.

Introduced in House

Purpose and Intent

The Ending Administrative Garnishment Act of 2025 (HR 3412) aims to reform the process of administrative garnishment related to federal student loans. The bill seeks to eliminate the practice of automatically garnishing wages without a court order, thereby providing greater protections for borrowers facing financial hardship.

Key Provisions

Elimination of Administrative Garnishment: The bill proposes to end the ability of federal agencies to garnish wages for the repayment of federal student loans without a judicial order.

Judicial Oversight Requirement: Any garnishment of wages for federal student loan repayment would require a court order, ensuring that borrowers have the opportunity to contest the garnishment in a legal setting.

Notification and Due Process: The bill mandates that borrowers must receive proper notification before any garnishment can occur, allowing them to respond or seek relief.

Financial Hardship Considerations: The legislation emphasizes the need to consider a borrower's financial situation before proceeding with garnishment, aiming to protect those in vulnerable economic conditions.

Who Would Be Affected

Borrowers: The primary beneficiaries of this bill would be individuals with federal student loans who are currently at risk of wage garnishment. The bill aims to provide them with more rights and protections.

Federal Agencies: Agencies responsible for collecting federal student loan debts would see a change in their procedures, as they would no longer be able to initiate garnishments without a court order.

Employers: Employers would also be affected, as they would no longer be required to comply with administrative garnishment orders without judicial backing.

Procedural and Timeline Aspects

Introduced Date: HR 3412 was introduced in the House on May 14, 2025.

Committee Referral: Following its introduction, the bill was referred to the House Committee on Education and Workforce for further consideration.

Companion Bill: There is a related companion bill, S 1764, which is being considered in the Senate, indicating bipartisan interest in the issue.

Conclusion

The Ending Administrative Garnishment Act of 2025 represents a significant shift in how federal student loan debts can be collected, prioritizing borrower protections and due process. By requiring judicial oversight for wage garnishments, the bill aims to alleviate the financial burden on borrowers and ensure fair treatment in the debt collection process. As the bill progresses through the legislative process, its implications for borrowers and federal agencies will be closely monitored.

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