§ 105B-1. Purpose and Definitions.

Chapter105B.

Defaulted Student LoanRecovery Act.

Article 1.

Withholding of PersonalEarnings.

§ 105B‑1.  Purpose andDefinitions.

(a)        It is the purposeof this Article to enable the State Education Assistance Authority to seek anorder of withholding of personal earnings against a debtor who owes money tothe Authority through default on a student loan as a means of enforcing ajudgment which requires the payment of money to the Authority.

(b)        As used in thisArticle:

(1)        "Annual federalpoverty guidelines" means the annual federal poverty guidelines issued bythe United States Department of Health and Human Services in effect at the timein question.

(2)        "Authority"means the State Education Assistance Authority as enabled by Article 23 ofChapter 116 of the General Statutes.

(3)        "Debtor"means any individual owing money to the Authority through default on a studentloan made, guaranteed or owned by the Authority, which obligation has not beenadjudicated satisfied by court order, set aside by court order, or dischargedin bankruptcy.

(4)        "Family"means a parent or parents and minor children or spouses that reside together.

(5)        "Familyincome" means family income as set out in the annual federal povertyguidelines.

(6)        "Mistake offact" means that the debtor:

a.         Is not the actualperson named in the judgment that is the basis for a withholding action underthis section;

b.         Has satisfied theobligation represented by the judgment in full and is entitled to have thejudgment cancelled; or

c.         Does not have monthlydisposable earnings or is not employed by the payor as stated by the Authorityin its motion to the court.

d.         Has family income ator below two hundred percent (200%) of the annual federal poverty guidelines.

(7)        "Payor"means the person, firm, association or corporation by whom the debtor isemployed.

(8)        "Studentloan" means a loan or loans made to eligible students or parents ofstudents to aid in obtaining an education beyond the high school level. (1989,c. 475, s. 1.)