Can I please have my paycheck?
March 9, 2010 7:19 AM Subscribe
Can my university garnish my wages if I owe them tuition and I work for them?
I go to school in South Carolina. I have student loans that were cancelled and I am in the process of getting those back. However, since my tuition hasn't been paid, I owe my private university money. I also work part time for this university in their IT department. Because I owe tuition, instead of letting my paycheck go to my bank account, they simply keep it. I just want to know if this is legal. If it is or isn't, I would like to know what laws pertain to this situation. It's incredibly disheartening when your entire paycheck is gone and it’s not even my fault. The university made an error and told my lender I was no longer was in school. Any information or advice would be greatly appreciated.
I go to school in South Carolina. I have student loans that were cancelled and I am in the process of getting those back. However, since my tuition hasn't been paid, I owe my private university money. I also work part time for this university in their IT department. Because I owe tuition, instead of letting my paycheck go to my bank account, they simply keep it. I just want to know if this is legal. If it is or isn't, I would like to know what laws pertain to this situation. It's incredibly disheartening when your entire paycheck is gone and it’s not even my fault. The university made an error and told my lender I was no longer was in school. Any information or advice would be greatly appreciated.
Does the school have a judgement against you? (Did they sue you to collect the tuition?
posted by FergieBelle at 7:34 AM on March 9, 2010
posted by FergieBelle at 7:34 AM on March 9, 2010
This also depends on whether or not your work is "work study" (which is a form of financial aid) or if you were hired as a regular employee who has decided to take classes. It also depends on the state laws, and of course a private university (if you are a student under work study) can do many different things that public universities can't or won't do.
Your best bet is to read all of the fine print in your Undergraduate Bulletin and any financial aid papers you have, and any employee handbooks/documents you can get your hands on. You can ask a lawyer, but they might have to go read all of the fine print themselves before they know the answer, so you might as well find the relevant fine print and take it with you to a lawyer (unless you find one that is familiar with this university and how they operate).
posted by MultiFaceted at 7:41 AM on March 9, 2010
Your best bet is to read all of the fine print in your Undergraduate Bulletin and any financial aid papers you have, and any employee handbooks/documents you can get your hands on. You can ask a lawyer, but they might have to go read all of the fine print themselves before they know the answer, so you might as well find the relevant fine print and take it with you to a lawyer (unless you find one that is familiar with this university and how they operate).
posted by MultiFaceted at 7:41 AM on March 9, 2010
Response by poster: No, they haven't sued or gotten a judgment. I just get an email at the beginning of the week telling me that my account is past due and that they are redirecting the funds to my tuition account. I'm an undergrad and I am only part-time. They would consider this job a work/study.
As for getting a lawyer, this should be resolved within a week or two so I don't feel a need to do that. However, if they are breaking the law, I would like to point it out to them so they can stop this practice.
They have a policy that says they can do this, but having a policy and having a legal policy are two different things.
posted by bobber at 7:45 AM on March 9, 2010
As for getting a lawyer, this should be resolved within a week or two so I don't feel a need to do that. However, if they are breaking the law, I would like to point it out to them so they can stop this practice.
They have a policy that says they can do this, but having a policy and having a legal policy are two different things.
posted by bobber at 7:45 AM on March 9, 2010
Your university may have a legal aid department, I would consult with them. Their policy may not be legal without you agreeing to it, which you most likely did when you took the job. I hope it works, out, that does indeed suck. And when it does get straightened out, do you get back-pay with interest?
posted by CharlesV42 at 7:49 AM on March 9, 2010
posted by CharlesV42 at 7:49 AM on March 9, 2010
Under most circumstances they would never be able to keep the whole thing. Usually they would have to file a civil suit to take any of your check and then it would typically be some smaller percentage, like 10 or 15% of your earnings.
Here are some links to SC law that may or may not be relevant.
SECTION 41-10-40. (C) An employer shall not withhold or divert any portion of an employee's wages unless the employer is required or permitted to do so by state or federal law or the employer has given written notification to the employee of the amount and terms of the deductions as required by subsection (A) of Section 41-10-30.
SECTION 37-5-104. No garnishment.
With respect to a debt arising from a consumer credit sale, a consumer lease, a consumer loan, or a consumer rental-purchase agreement, regardless of where made, the creditor may not attach unpaid earnings of the debtor by garnishment or like proceedings.
Here's a link to some laws regarding education. If any of these laws say that they can take your wages, than that would meet the criteria of 41-10-40(c).
I'm not a lawyer, but based on these laws I would think that you might want to consult with one. I understand that the amount of money that is involved might not make it worth it, maybe someone else can recommend an organization that can connect you with one who will work pro bono. Some areas have organizations that will take cases that involve labor rights. Maybe there is something like that in your state.
posted by jefeweiss at 7:51 AM on March 9, 2010 [1 favorite]
Here are some links to SC law that may or may not be relevant.
SECTION 41-10-40. (C) An employer shall not withhold or divert any portion of an employee's wages unless the employer is required or permitted to do so by state or federal law or the employer has given written notification to the employee of the amount and terms of the deductions as required by subsection (A) of Section 41-10-30.
SECTION 37-5-104. No garnishment.
With respect to a debt arising from a consumer credit sale, a consumer lease, a consumer loan, or a consumer rental-purchase agreement, regardless of where made, the creditor may not attach unpaid earnings of the debtor by garnishment or like proceedings.
Here's a link to some laws regarding education. If any of these laws say that they can take your wages, than that would meet the criteria of 41-10-40(c).
I'm not a lawyer, but based on these laws I would think that you might want to consult with one. I understand that the amount of money that is involved might not make it worth it, maybe someone else can recommend an organization that can connect you with one who will work pro bono. Some areas have organizations that will take cases that involve labor rights. Maybe there is something like that in your state.
posted by jefeweiss at 7:51 AM on March 9, 2010 [1 favorite]
I don't know whether it's different for work-study, but as far as I know, only a certain percentage of your wages can be garnished (on preview, what jefeweiss said). State law may vary, and there's also variance depending on whether the school is public or private. I'm not a lawyer either, but it doesn't sound like what they are doing is actually garnishing -- unless you've gotten a notice from a court (not an e-mail) that says that is what they're doing.
decathecting is correct that laws concerning collection of student loan debt are complex. Have you talked to your Financial Aid office? I would do that before going to a lawyer. Also, I wouldn't recommend telling them that they are breaking the law unless you know that they are breaking it. You're more likely to get cooperation if you inquire about the mistake, the bureaucratic error, or whatever it is, in a "I'm seriously concerned, can you clear this up?" kind of way. If they refuse to help, then next steps may involve legal intervention.
posted by blucevalo at 7:57 AM on March 9, 2010
decathecting is correct that laws concerning collection of student loan debt are complex. Have you talked to your Financial Aid office? I would do that before going to a lawyer. Also, I wouldn't recommend telling them that they are breaking the law unless you know that they are breaking it. You're more likely to get cooperation if you inquire about the mistake, the bureaucratic error, or whatever it is, in a "I'm seriously concerned, can you clear this up?" kind of way. If they refuse to help, then next steps may involve legal intervention.
posted by blucevalo at 7:57 AM on March 9, 2010
IANAL but: laws like those linked by Jefeweiss typically involve the non-voluntary redirection of wages. My guess is that this is something that you agreed to (whether you realize/remember it or not) when you took the job. Without knowing the actual terms of your employment, it is unlikely that anyone here can actually speak to your specific situation.
posted by toomuchpete at 8:17 AM on March 9, 2010
posted by toomuchpete at 8:17 AM on March 9, 2010
IANYL, this is not legal advice, and this is not an area of my expertise, but I suspect what they're doing is legal. Garnishing your wages to pay another creditor would be a much more extreme remedy than simply offsetting your wages against your debts as a form of self-help. They are only doing the latter, a point which the commentary in this thread seems to miss.
Outside of bankruptcy, and barring any agreement to the contrary, I think your employer is within its rights to to withhold your wages up to the amount of current debts.
You should raise this with the school and point out their error.
posted by grobstein at 12:39 PM on March 9, 2010
Outside of bankruptcy, and barring any agreement to the contrary, I think your employer is within its rights to to withhold your wages up to the amount of current debts.
You should raise this with the school and point out their error.
posted by grobstein at 12:39 PM on March 9, 2010
Maybe what I'm saying is undermined by 41-10-40 (linked above).
On the other hand, 37-5-104 probably doesn't apply, because the university is not employing "garnishment or like proceedings," a phrase which refers to judicial process. The university doesn't have to (ask a court to) garnish the wages, since it can just withhold them itself.
posted by grobstein at 12:42 PM on March 9, 2010
On the other hand, 37-5-104 probably doesn't apply, because the university is not employing "garnishment or like proceedings," a phrase which refers to judicial process. The university doesn't have to (ask a court to) garnish the wages, since it can just withhold them itself.
posted by grobstein at 12:42 PM on March 9, 2010
You said this is considered work study by your institution. If it is Federal Work Study (call the Financial Aid office and ask them if you are under Federal Work Study), your fine print is here. It says, in part:
(3) An institution must pay FWS compensation to a student by--
(i) Check or similar instrument that the student can cash on his or her own endorsement;
(ii) Initiating an electronic funds transfer (EFT) to a bank account designated by the student after obtaining the authorization described in paragraph (a)(4)(i) of this section;
(iii) Crediting the student's account at the institution after obtaining the authorization described in paragraph (a)(4)(i) of this section. The institution may only credit the student's account at the institution to satisfy current award year charges for--
(A) Tuition and fees;
(B) Board, if the student contracts with the institution for board;
(C) Room, if the student contracts with the institution for room; and
(D) Other institutionally provided educationally related goods and services;
Based on that, this isn't garnishment of wages in the legal sense, so those laws wouldn't apply. Work Study laws would. It goes on to talk about obtaining authorization from the student, so there should be a piece of paper that you signed somewhere in your file that explained all of this. So, I would ask Financial Aid (or the Work Study office if your institution has a separate one) for the paperwork you signed for Work Study.
posted by MultiFaceted at 2:47 PM on March 9, 2010
(3) An institution must pay FWS compensation to a student by--
(i) Check or similar instrument that the student can cash on his or her own endorsement;
(ii) Initiating an electronic funds transfer (EFT) to a bank account designated by the student after obtaining the authorization described in paragraph (a)(4)(i) of this section;
(iii) Crediting the student's account at the institution after obtaining the authorization described in paragraph (a)(4)(i) of this section. The institution may only credit the student's account at the institution to satisfy current award year charges for--
(A) Tuition and fees;
(B) Board, if the student contracts with the institution for board;
(C) Room, if the student contracts with the institution for room; and
(D) Other institutionally provided educationally related goods and services;
Based on that, this isn't garnishment of wages in the legal sense, so those laws wouldn't apply. Work Study laws would. It goes on to talk about obtaining authorization from the student, so there should be a piece of paper that you signed somewhere in your file that explained all of this. So, I would ask Financial Aid (or the Work Study office if your institution has a separate one) for the paperwork you signed for Work Study.
posted by MultiFaceted at 2:47 PM on March 9, 2010
This thread is closed to new comments.
posted by decathecting at 7:34 AM on March 9, 2010