(a) The corporation may garnish the disposable pay of a borrower who is not making payments on a program loan held by the corporation in accordance with this section.

1. (1) At least 30 days before the initiation of garnishment proceedings, the corporation shall mail to the borrower's last known address, a written notice of the nature and amount of the debt, the intention of the corporation to initiate proceedings to collect the debt through deductions from pay, and an explanation of the borrower's rights.
2. (2) The corporation shall offer the borrower an opportunity to inspect and copy corporation records related to the debt. Upon receipt of a written request, the corporation will, within five business days, either mail, fax, e-mail or otherwise send the documents to the borrower. If the borrower’s written request so states, the borrower may visit the corporation to inspect the documents during regular business hours at the corporation’s headquarters. Upon written request of the borrower, the corporation shall provide one copy of records in the possession of the corporation related to the debt at no charge to the borrower.
3. (3) The corporation shall offer the borrower an opportunity to enter into a written repayment agreement with the corporation under terms agreeable to the corporation.
4. (4) The corporation shall offer the borrower an opportunity for a hearing concerning the existence or the amount of the debt and, in the case of a borrower whose proposed repayment schedule under the garnishment order is established other than by a written agreement, the terms of the repayment schedule.
5. (5) The corporation may not garnish the wages of a borrower whom it knows has been involuntarily separated from employment until the borrower has been reemployed continuously for at least 12 months.
6. (6) Unless the corporation receives information that the corporation believes justifies a delay or cancellation of the withholding order, it shall send a withholding order to the employer within 20 days after the borrower fails to make a timely request for a hearing, or, if a timely request for a hearing is made by the borrower, within 20 days after a final decision is made by the corporation to proceed with garnishment.
7. (7) The corporation shall provide a hearing, which, at the borrower's option, may be oral or written, if the borrower submits a written request for a hearing on the existence or amount of the debt or the terms of the repayment schedule. The time and location of the hearing shall be established by the corporation. An oral hearing may, at the borrower's option, be conducted either in-person or by telephone conference. All telephonic charges must be the responsibility of the corporation.
8. (8) If the borrower's written request is received by the corporation on or before the 15th day following the borrower's receipt of the notice the corporation may not issue a withholding order until the borrower has been provided the requested hearing. In the absence of evidence to the contrary, a borrower shall be considered to have received the notice five days after it was mailed by the corporation. The corporation shall provide a hearing to the borrower in sufficient time to permit a decision, in accordance with the procedures that the corporation may prescribe, to be rendered within 60 days.
9. (9) If the borrower's written request is received by the corporation after the 15th day following the borrower's receipt of the notice the corporation shall provide a hearing to the borrower in sufficient time that a decision, in accordance with the procedures that the corporation may prescribe, may be rendered within 60 days, but may not delay issuance of a withholding order unless the corporation determines that the delay in filing the request was caused by factors over which the borrower had no control, or the corporation receives information that the corporation believes justifies a delay or cancellation of the withholding order. In the absence of evidence to the contrary, a borrower shall be considered to have received the notice five days after it was mailed by the corporation.
10. (10) The hearing official appointed by the corporation to conduct the hearing may be any qualified individual, as approved by the corporation, including an administrative law judge, or other qualified individual as approved by the corporation, not under the supervision or control of the head of the corporation.

11. (11) The hearing official shall issue a final written decision at the earliest practicable date, but not later than 60 days after the corporation’s receipt of the borrower's hearing request.

    (b)

12. (1) The notice given to the employer must contain only the information as may be necessary for the employer to comply with the withholding order.
13. (2) The employer shall deduct and pay to the corporation from a borrower's wages an amount that does not exceed the lesser of 15 percent of the borrower's disposable pay for each pay period or the amount by which a debtor’s disposable pay exceeds an amount equal to 30 times the minimum wage as specified in 15 U.S.C. 1673(a)(2) or the amount permitted by the program, unless the borrower provides the agency with written consent to deduct a greater amount. For this purpose, the term disposable pay means that part of the borrower's compensation from an employer remaining after the deduction of any amounts required by law to be withheld.
14. (3) The corporation may sue any employer for any amount that the employer, after receipt of the garnishment notice provided by the corporation fails to withhold from wages owed and payable to an employee under the employer's normal pay and disbursement cycle.