If this debt is not legitimate, you may have the right to sue this creditor to, not only stop the garnishment, but also for violation of debt colletions laws (Fed and state). You should consult a consumer protection attorney right away.
Student loan collectors do not need a court order for administrative garnishment. You need to get info from the company about the account to potentially challenge the legitimacy of the debt.
Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.
If you don't care about your job, then just quit and keep quiet about where you go to work next and warn your next boss about this scammer before the same letter comes in.
Assuming you want to keep this job, you have a delicate balance to achieve here. First, you don't want to piss off your boss/employer, so be polite. Second, if your boss/employer wants to comply with this demand, your task is to reassure them that they don't have to.
Normally, a court judgment is required before wages can be garnished. However, there are some exceptions, usually for governmental obligations (like income taxes). I am unaware of any exception for student loans (even if government guaranteed or owned), so it sounds like this "garnishment" demand is bogus and probably violates several state and federal debt collection laws too.
Your employer will probably not be satisfied by any explanation you can provide, but more likely will be comforted by the opinion of an attorney. It is your job to find a competent, local debt collection attorney to review and investigate the situation, then write a letter to your employer re-assuring them that this is a scam and no garnishment should be done.
If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.
Student loans can garnish without court order. But if they have the wrong person you need to dispute this with Van Ru and US Funds. Normally the creditor should have first sent you a letter notifying you of the intent to garnish but providing you an opportunity to dispute the claim or enter a payment plan.
The questions and answers posted on AVVO are for general information and should not be treated as legal advice or establishing an attorney-client relationship.