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Article updated: 4/12/2013 7:46 AM

Bill bans lenders from garnishing graduates' wages

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Assemblywoman Shannon Grove, R-Bakersfield, speaks in opposition to a measure that would prevent lenders from garnishing the wages of those who fail to repay student loans not made or guaranteed by the federal government, during the Assembly session at the Capitol in Sacramento, Calif., Thursday.

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Graduates struggling to repay private student loans could get a reprieve under legislation that passed the California state Assembly on Thursday The bill from Assemblyman Bob Wieckowski, D-Fremont, would prevent private lenders from garnishing the wages of indebted former students.Wieckowski said the creditors are allowed to withhold up to 25 percent of a delinquent borrower's disposable income.
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