What would you like to do?
Can your disability benefits be garnished if your student loan is over 10 years old?
Yes, Social Security CAN and WILL be garnished for defaulted student loans. Theyll take anything over 750 or 15% whichever is more. Just try getting it dismissed for disability, Its IMPOSSIBLE!! No matter how long you've been on disability!! PS They wont allow government aid like food stamps to increase to make up difference either! GOD BLESS AMERICA! I borrowed 2250 25 years ago, (BIG MISTAKE)now with collection fees its almost 10000 and they'll harass me to the grave, even making me poorer then poorest person on welfare!! I LOVE this country!! NOT!!! and NO they do not lend money to people as dirt poor as I am and have always been to refinance!! I just LOVE this country!!
2 people found this useful
Was this answer useful?
Thanks for the feedback!
Your VA disability to my knowledge is untouchable to all creditors, to include child support, and student loans. Your student loans will affect your credit report negati…vely until it is in good standing. It will never go away or default. You can not claim it on a bankruptcy either.
In England they are aged 14-15
YES! YES, AND THEY WILL BE. For gods sake, contact the lender and let them know you cannot afford to make the payments, they will work with you. You do not want your wages gar…nished. FYI....There is a company that helped removed my defaulted student loan garnishment. Contact them at www.asgardfinancial.com . Educational loans are particularly sensitive when it comes to wage garnishment. Even states that do not allow wage garnishment exempt student loans so to answer your question - yes. Your student loan lender can garnish your wages until the full student loan is paid in full. If you are having trouble paying them off and need to lower payments or some other form of debt relief, there is an ombudsman service from the Federal Student Loan that you can use: http://wagegarnishmentforum.com/index.php?topic=53.0 Yes, they definitely can! If your defaulted loans are federal, like Stafford, PLUS, or Perkins, then you can get help from Default Management Services, Inc. Use Google to look up the phone #. Ask for Doug
The answer is NO, SSI will NEVER be garnished, except to repay SSI overpayments, which can be recovered by a 10% reduction of benefits. SSI will NEVER be garnished for student… loans, back taxes, etc. Regular social security payments (NOT SSI) can be garnished IF you draw MORE than $750/month. If you make LESS than $750/month, nothing can be taken from your earnings. A garnishment can take 15% or the amount OVER $750, whichever is less to repay a "non-tax" debt, such as a student loan.
Disability benefits cannot be garnished. No sort of social service money can be subject to a garnishment because it is meant to help the recipient.
Once a garnishment order that involves federal matters is executed it remains in affect until the debt is paid in full or the debt is forgiven under the existing laws for fede…ral student loans. In rare cases debt for federally funded student loans are cancelled when it can be proven by the debtor that he or she due to some extreme circumstances (physical impairment for example) will never be able to meet the financial obligation.
In the U.S., 15% of your wages is the guideline, but I have seen up to 25%.
Yes, if federal student loans go into a default status, the collection agency can garnish. If you want to get out of default, there are two ways: There are only 2 ways to ge…t out of default on your Federally Guaranteed student loans. Contact your collection company or student loan servicer and request to enter the rehabilitation program. Most people qualify, but I have seen some refused when the default is over 10 years old. In the rehabilitation program, you will need to make 9-12 on-time payments in addition to your garnishment. After the 9-12 on-time payments, they should stop the garnishment, but you will stay in a default status until your Rehabed loans are sold to a new lender. In the past, that was an easy process, but in these turbulent financial times, other lenders are not buying rehabed loans. So, with this option your loans will stay in a Default status for the forseeable future.The second way you can get out of default and have your garnishment lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will probably not release the loan for consolidation while in a garnishment stage. The good news is, there are a few companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. One good example is Default Management Services, Inc. They are the cheapest I have seen and give a 100% money back guarantee on their services. You can Google the company name to get the phone #. Ask for Doug, he is very knowledgeable.
I have the same question and it took some time to get an answer...everthing I had read on the web for this question was an unrelenting "they can garnish and take anything." Ra…ther cruel I thought but I emailed a counselor with the Dept. of Ed. and they wont garnish a benefit over $750. Amounts above this they take the offset.
Yes, if it was a federally insured student loan or a federal student loan, within limits. Often what occurs is the monthly disability check will be reduced each month at an am…ount that allows one enough income for basic expenses and provide a sum for the repayment of the loan, until the loan is repaid in full.
Probably not, as minors can not legally enter into a contract in most states. If someone gave a 17 year old entered into a contract then the 17 year old may be able to get out… of the deal. This answer above is incorrect. Yes you can get financial aid and once you do sign the promissory note you cannot get out of it. You will need to pay the loan back. The laws changed many years ago that allowing 17 year old to receive aid because their were so many 17 year old graduates. Talk to your financial aid person.
If your student loans are being garnished, you can count on your name being on the tax offset list, meaning that they will apply your refund amount to your loan repayment. …If you need help getting out of default, or getting a garnishment lifted, then contact Default Management Services, Inc. for help. You can Google the name for a phone #. Ask for Doug, he is knowledgeable.
Title 20, United States Code, section 1095a: "(a) Garnishment requirements Notwithstanding any provision of State law, a guaranty agency, or the Secretary in the case of loans… made, insured or guaranteed under this subchapter and part C of subchapter I of chapter 34 of title 42 that are held by the Secretary, may garnish the disposable pay of an individual to collect the amount owed by the individual, if he or she is not currently making required repayment under a repayment agreement with the Secretary, or, in the case of a loan guaranteed under part B of this subchapter on which the guaranty agency received reimbursement from the Secretary under section 1078(c) of this title, with the guaranty agency holding the loan, as appropriate, provided that - (1) the amount deducted for any pay period may not exceed 10 percent of disposable pay, except that a greater percentage may be deducted with the written consent of the individual involved; (2) the individual shall be provided written notice, sent by mail to the individual's last known address, a minimum of 30 days prior to the initiation of proceedings, from the guaranty agency or the Secretary, as appropriate, informing such individual of the nature and amount of the loan obligation to be collected, the intention of the guaranty agency or the Secretary, as appropriate, to initiate proceedings to collect the debt through deductions from pay, and an explanation of the rights of the individual under this section; (3) the individual shall be provided an opportunity to inspect and copy records relating to the debt; (4) the individual shall be provided an opportunity to enter into a written agreement with the guaranty agency or the Secretary, under terms agreeable to the Secretary, or the head of the guaranty agency or his designee, as appropriate, to establish a schedule for the repayment of the debt; (5) the individual shall be provided an opportunity for a hearing in accordance with subsection (b) of this section on the determination of the Secretary or the guaranty agency, as appropriate, concerning the existence or the amount of the debt, and, in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph (4), concerning the terms of the repayment schedule; (6) the employer shall pay to the Secretary or the guaranty agency as directed in the withholding order issued in this action, and shall be liable for, and the Secretary or the guaranty agency, as appropriate, may sue the employer in a State or Federal court of competent jurisdiction to recover, any amount that such employer fails to withhold from wages due an employee following receipt of such employer of notice of the withholding order, plus attorneys' fees, costs, and, in the court's discretion, punitive damages, but such employer shall not be required to vary the normal pay and disbursement cycles in order to comply with this paragraph; (7) if an individual has been reemployed within 12 months after having been involuntarily separated from employment, no amount may be deducted from the disposable pay of such individual until such individual has been reemployed continuously for at least 12 months; and (8) an employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage withholding in accordance with this section by reason of the fact that the individual's wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdiction any employer who takes such action. The court shall award attorneys' fees to a prevailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order such other remedy as may be reasonably necessary. (b) Hearing requirements A hearing described in subsection (a)(5) of this section shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection (a)(2) of this section, and in accordance with such procedures as the Secretary or the head of the guaranty agency, as appropriate, may prescribe, files a petition requesting such a hearing. If the individual does not file a petition requesting a hearing prior to such date, the Secretary or the guaranty agency, as appropriate, shall provide the individual a hearing under subsection (a)(5) of this section upon request, but such hearing need not be provided prior to issuance of a garnishment order. A hearing under subsection (a)(5) of this section may not be conducted by an individual under the supervision or control of the head of the guaranty agency, except that nothing in this sentence shall be construed to prohibit the appointment of an administrative law judge. The hearing official shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing. (c) Notice requirements The notice to the employer of the withholding order shall contain only such information as may be necessary for the employer to comply with the withholding order. (d) No attachment of student assistance Except as authorized in this section, notwithstanding any other provision of Federal or State law, no grant, loan, or work assistance awarded under this subchapter and part C of subchapter I of chapter 34 of title 42, or property traceable to such assistance, shall be subject to garnishment or attachment in order to satisfy any debt owed by the student awarded such assistance, other than a debt owed to the Secretary and arising under this subchapter and part C of subchapter I of chapter 34 of title 42. (e) "Disposable pay" defined For the purpose of this section, the term "disposable pay" means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by law to be withheld." (emphasis added) My guess is that amounts already in your 401(k) should be safe from action made pursuant to this statute because your 401(k) is a personal asset and not "disposable pay" per 20 U.S.C. §1095a(e). Prospectively, however, amounts directed by your employer into your 401(k) are not safe as these amounts would be considered disposable pay, as they are not amounts required by law to be withheld and would be required to be sent by your employer directly to the creditor. The federal government also gets a cause of action to sue you on the note. A judgment lien obtained there can be collected as any ordinary judicial lien can be foreclosed. All they have to do is go to proceedings in aid of execution and you have to disclose your assets, including your 401(k). Then all they have to do is satisfy the lien out of the proceeds, which means they get a court order ordering the institution holding the account to pay over.
Probably not, but if so i'd like to apply for one. Im unemployed and need to further my education.
In the U.S., 15% of your wages is the guideline, but I have seen up to 25%.
Yes, the Dept. of Ed. allows collection companies to garnish up to 15% of SSI benefits for Default Federal student loans. There are only 2 ways to get out of default on your… Federally Guaranteed student loans. Contact your collection company or student loan servicer and request to enter the rehabilitation program. Most people qualify, but I have seen some refused when the default is over 10 years old. In the rehabilitation program, you will need to make 9-12 on-time payments in addition to your garnishment. After the 9-12 on-time payments, they should stop the garnishment, but you will stay in a default status until your Rehabed loans are sold to a new lender. In the past, that was an easy process, but in these turbulent financial times, other lenders are not buying rehabed loans. So, with this option your loans will stay in a Default status for the forseeable future.The second way you can get out of default and have your garnishment lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will probably not release the loan for consolidation while in a garnishment stage. The good news is, there are a few companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. One good example is Default Management Services, Inc. They are the cheapest I have seen and give a 100% money back guarantee on their services. You can Google the company name to get the phone #. Ask for Doug.
In Federal Laws
(in the US) student loans are guaranteed by the government for the sole purpose of the borrower completing their education and becoming a contributing (and taxpaying) member o…f the community. As a general rule you are free from being garnished by the lender because the government guaranteed the lender they would be paid. How the government might approach you for your repayment to THEM is another matter. I have actually spoke with social security and they state that social security SSI can only be touched if you owe child support. It is need based and not even the government can take that from the individual. Call the Social Security/Disability office for further info.