34 CFR 34.25 - Determination of financial hardship.
(1) If we conclude that garnishment at the amount or rate proposed in a notice would cause you financial hardship, we reduce the amount of the proposed garnishment to an amount that we determine will allow you to meet proven basic living expenses.
(b) If we determine that financial hardship would result from garnishment based on a finding by a hearing official or under a repayment agreement we reached with you, this determination is effective for a period not longer than six months after the date of the finding or agreement.
(2) If we conclude from a review of that evidence that we should increase the rate of withholding or payment, we -
(i) Notify you; and
(ii) Provide you with an opportunity to contest the determination and obtain a hearing on the objection under the procedures in § 34.24.