This brief post supplements a post earlier this year concerning federal agency administrative wage garnishments. The earlier post stated that state law garnishment exemptions to do apply to administrative garnishments by federal agencies collecting debts to the federal government, such as student loans.
The post also stated that administrative wage garnishments are limited to 25% of disposable income pursuant to federal law applicable to all wage garnishment under state law. I found a U.S Treasury website stating that there are two ceilings on administrative garnishments. One ceiling (25%) is applied to disposable income, and another ceiling (15%) applies to gross income. Debtors concerned about administrative wage garnishments should consult this Treasury website to assess their exposure.