New York Codes, Rules and Regulations › Title 8 - EDUCATION DEPARTMENT › Chapter XX - Higher Education Services Corporation › Subchapter D - The New York Higher Education Loan Program (nyhelps) › Part 2213 - The New York Higher Education Loan Program (nyhelps) › Section 2213.24 - Administrative wage garnishment

Current through Register Vol. 46, No. 28, July 10, 2024
(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) 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) 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) 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) 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) 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) 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) 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) 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) 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) 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) 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.