Chapter 105B.
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Chapter 105B.
Defaulted Student Loan Recovery Act.
Article 1.
Withholding of Personal Earnings.
§ 105B-1. Purpose and Definitions.
(a)It is the purpose of this Article to enable the State Education Assistance Authority to seek an order of withholding of personal earnings against a debtor who owes money to the Authority through default on a student loan as a means of enforcing a judgment which requires the payment of money to the Authority.
(b)As used in this Article:
(1)"Annual federal poverty guidelines" means the annual federal poverty guidelines issued by the United States Department of Health and Human Services in effect at the time in question.
(2)"Authority" means the State Education Assistance Authority as enabled by Article 23 of Chapter 116 of the General Statutes.
(3)"Debtor" means any individual owing money to the Authority through default on a student loan made, guaranteed or owned by the Authority, which obligation has not been adjudicated satisfied by court order, set aside by court order, or discharged in bankruptcy.
(4)"Family" means a parent or parents and minor children or spouses that reside together.
(5)"Family income" means family income as set out in the annual federal poverty guidelines.
(6)"Mistake of fact" means that the debtor:
a. Is not the actual person named in the judgment that is the basis for a withholding action under this section;
b. Has satisfied the obligation represented by the judgment in full and is entitled to have the judgment cancelled; or
c. Does not have monthly disposable earnings or is not employed by the payor as stated by the Authority in its motion to the court.
d. Has family income at or below two hundred percent (200%) of the annual federal poverty guidelines.
(7)"Payor" means the person, firm, association or corporation by whom the debtor is employed.
(8)"Student loan" means a loan or loans made to eligible students or parents of students to aid in obtaining an education beyond the high school level. (1989, c. 475, s. 1.)