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Simply, administrative wage garnishment (AWG) is a mechanism the Federal Government has at its disposal to collect on a student loan for which the borrower is in a condition known as "default." In this situation, a borrower cannot or will not repay their debt so the government uses AWG to collect a portion of the borrower's earnings directly from his paycheck. This is a procedure of last resort and the borrower opportunities to negotiate a re-payment arrangement or appeal the decision to use AWG to collect the debt. For more information about a complicated process, visit http://www2.ed.gov/offices/OSFAP/DCS/awg.html.

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15y ago

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