Can there be a wage garnishment on your ssi benefits for defaulted student loans?

Answer 1

NO! First of all a collection agency does not have legal power to attach or seize any property belonging to a debtor. Due process of law must be followed, meaning a lawsuit. If the creditor wins the suit (they always do) a judgment is entered against the debtor. The judgment creditor can then execute the writ against any non exempt property belonging to the debtor. All SS benefits are 100% exempt from creditor action of any sort. The collector/agency should be reported to the attorney general's office of the state in which the debtor resides, as they have violated the FDCPA by making false statements, using coercion and intimidation tactics and so forth. No. All Social Security Benefits are exempted by Federal Statutes from creditor action....by Macky (macky83@juno.com)

Answer 2

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.

1. 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.
2. 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.

Answer 3

(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 of 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.

Answer 4

No, they are protected from creditor judgments under federal statutes.

However, all Social Security benefits awarded to a non custodial parent are subject to garnishment for child support obligations.

Answer 5

All SS benefits are exempt from creditor actions. However a vehicle and a house are considered secured debt and can be subjected to seizure and possible sale by the lender.

Answer 6

bs i had student loans being garnished from my disabilty ss

Answer 7

No. All SS, SSD and SSI are exempt from creditor action.

Answer 8

No, all SS benefits are exempt from creditor garnishment, the exceptions are child support obligations and in some instances federal tax arrearages.

Answer 9

No. Federal law prohibits a court from ordering that any government subsidy be used for the payment of a debt.