S. 1764 — Ending Administrative Garnishment Act of 2025

This section suspends administrative wage garnishment authority for defaulted federal student loans (i.e., up to 15% of disposable pay without court order) under the Higher Education Act beginning on the date of enactment of the Ending Administrative Garnishment Act of 2025 until the Secretary of Education submits a certification to the Senate Committee on Health, Education, Labor, and Pensions and the House Committee on Education and Workforce not earlier than one year after enactment. (As background, the authority allows the Department of Education or guaranty agencies to collect on loans held by the Secretary or reimbursed under the Federal Family Education Loan Program from borrowers not in approved repayment.) The certification must confirm either (1) implementation of processes to refund improper garnishments within one calendar week, enable the Secretary to independently cease or suspend garnishments for any borrower or cohort at sole discretion, and require quarterly employer verifications of garnishment data accuracy (including scheduled amounts and contact information) or (2) a determination to end the program; if confirming implementation, the Secretary must establish a centralized database of garnished borrowers' demographic data (pre- and post-enactment) and submit an initial report within 90 days and annual reports thereafter. This section further (1) authorizes the Secretary, guaranty agency, or borrower to sue employers in state or federal court for improper withholding after notice of withholding order suspension or revocation, seeking withheld amounts, actual damages, attorneys' fees, costs, and (in the court's discretion) punitive damages; (2) requires the Secretary to refund twice the amount of any improper garnishment to the borrower within 10 days, enforceable by injunction notwithstanding other limitations; and (3) prohibits garnishment of loans outstanding for more than 10 years.