Can social security and disability checks under 750 be garnished for defaulted student loans yes or no?

Answer 1

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.

Answer 2

Yes, the collection agency can garnish up to 15% of your SSI for repayment of defaulted student loans. If you feel it is an economic hardship, you can contest the garnishment at the Ohmbudsman's office at the Dept. of Ed.

Answer 3

Yes, if it was a federally insured student loanor a federal student loan, within limits. Often what occurs is the monthly disability check will be reduced each month at an amount 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.

Answer 4

No, Section 207 of the Social Security Act prohibits regular creditors from garnishing or levy an individual's Social Security. The only way your Social Security can be garnished is if you owe money to the IRS, if you owe federal student loans, or if you owe child support or alimony payments.