Administrative Wage Garnishment (AWG)

The article may contain affiliate links from one or more partners. Learn how we make money to continue our financial wellness mission.

A tool that allows the federal government or your guaranty agency to have your employer withhold a portion of your earnings to collect unpaid non-tax debts that you owe to the federal government. If you have a federal student loan in default, up to 15% of your disposable pay could be taken by the federal government or your guaranty agency to repay your debt.