[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR34.25]



[Page 94]

 

                           TITLE 34--EDUCATION

 

PART 34_ADMINISTRATIVE WAGE GARNISHMENT--Table of Contents

 

Sec.  34.25  Determination of financial hardship.



    (a)(1) If we conclude that garnishment at the amount or rate 

proposed in a notice would cause you financial hardship, we reduce the 

amount of the proposed garnishment to an amount that we determine will 

allow you to meet proven basic living expenses.

    (2) If a garnishment order is already in effect, we notify your 

employer of any change in the amount the employer must withhold or the 

rate of withholding under the order.

    (b) If we determine that financial hardship would result from 

garnishment based on a finding by a hearing official or under a 

repayment agreement we reached with you, this determination is effective 

for a period not longer than six months after the date of the finding or 

agreement.

    (c)(1) After the effective period referred to in paragraph (b) of 

this section, we may require you to submit current information regarding 

your family income and living expenses.

    (2) If we conclude from a review of that evidence that we should 

increase the rate of withholding or payment, we--

    (i) Notify you; and

    (ii) Provide you with an opportunity to contest the determination 

and obtain a hearing on the objection under the procedures in Sec.  

34.24.



(Authority: 31 U.S.C. 3720D)