Federal Exempt Assets Protected from Garnishment
May 16, 2011 by Marcy Einhorn, Esq.
The new rule mentioned in my February 28th blog post became effective May 1.
Under the new rule, some Federal benefits are exempted from garnishment or restraint. Up to two months of Social Security, SSI, Veteran, Railroad Retirement and Federal Government Employee Retirement benefits are protected, or the amount in the account, whichever is less, when a restraint hits an account. Later deposits of assets, such as tax refunds or benefits, will not be subject to the restraint. Only the funds...
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Student Loans, Private Colleges, and the “Gainful Employment” Rule
May 4, 2011 by Marcy Einhorn, Esq.
The Department of Education is considering implementing a “gainful employment” rule which would restrict federal funding to private colleges where a certain percentage of students are unable to repay their loans because they cannot find gainful employment after graduation.
While the Department considers revisions to the not yet enacted rule, here is a brief description of the way the rule might work, straight off the Huffington Post:
“As drafted by the Department of Education,...
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