This bill suspends the federal government's authority to garnish wages from borrowers with defaulted student loans, effective immediately upon enactment. The suspension remains in place until the Secretary of Education certifies that robust safeguards are in place, including: a process to refund improperly garnished wages within one week, the ability to independently suspend garnishment at any time, and quarterly verification from employers that garnishment information is accurate. If the Secretary cannot implement these protections within one year, wage garnishment for student loans would be permanently prohibited. The bill also establishes new accountability measures, including a centralized database tracking garnishment data and annual reports to Congress, and creates legal remedies allowing employers and borrowers to sue for improper withholding, with the Department required to repay borrowers twice the improperly garnished amount within ten days. Additionally, the bill prevents wage garnishment for any student loan that has been outstanding for more than ten years.
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