Federal Salary Offset Program

If you are an employee of the federal government, you may have recently received from the U.S. Department of Education (Department) a NOTICE OF FEDERAL SALARY OFFSET. Your RIGHTS AND RESPONSIBILITIES are outlined in the insert included with that notice and in the Department's regulations.

You may avoid offset of your federal salary one of two ways:

  1. Enter into a voluntary repayment agreement that is acceptable to the Department, or
  2. Prove that you do not owe or should not have to repay the debt

Repaying Your Debt Voluntarily

If you want to enter into a repayment agreement at 15% of your disposable pay, you must send a written statement to the Federal Salary Offset (FSO) Unit address provided below, together with a copy of your two most recent pay stubs. To avoid salary offset, you must agree to pay the loan under terms acceptable to the Department, return a signed Repayment Agreement and actually make the first payment under the agreement within 65 days of the NOTICE OF FEDERAL SALARY OFFSET that was sent to you, and continue to make payments according to your agreement. If you made a request for documents within 20 days of the Notice, you have 15 days from the date the documents were mailed to you to work out a repayment agreement and make the first payment. If you objected to the debt within the deadlines explained in the Notice, but a decision was made denying your objections, you have seven days from the date the decision is mailed to you to work out the agreement and make the first payment. If you do not enter into and maintain an acceptable repayment agreement, the Department may initiate salary offset without further notification.