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Info Seeker
Posts: 2
Registered: ‎08-18-2015

Student loan debt

Message 1 of 5 (2,007 Views)
Anyone affected by student loan debt? High interest rates, SS being garnished?
Trusted Social Butterfly
Posts: 7,094
Registered: ‎02-14-2008

Re: Student loan debt

Message 2 of 5 (2,006 Views)

I had no idea that SS could be garnished for student loan debt!

Just think. The world was built by the lowest bidder.
Valued Social Butterfly
Posts: 8,598
Registered: ‎08-18-2008

Re: Student loan debt

[ Edited ]
Message 3 of 5 (1,998 Views)

retiredtraveler wrote:

I had no idea that SS could be garnished for student loan debt!

Federal Student Loans - not private ones.  Debts which are owed to the government, they have the right to collect from you - whether that is through a collections process or withholding monies which they are sending to you - be that a tax refund or a SS check.  However, they don't reduce SSI since that is welfare-based.


Remember this is only after other attempts to collect and lots of notices.


The federal government can garnish a portion of your benefits for repayment of several types of debts, including federal income taxes, federal student loans, child support and alimony, nontax debt owed to other federal agencies, defaulted federal home loans and certain civil penalties. (If you receive SSI, those benefits cannot be garnished under any circumstance.)


How much can actually be garnished depends on what you owe for. If you owe back taxes to the IRS, 15 percent of your Social Security benefits can be taken each month until the debt is paid in full. The government uses the Federal Payment Levy Program to garnish your payments.


If you owe money on a student loan -- it doesn't matter how long ago you were in school -- the first $750 of your monthly benefits is off-limits to garnishment. After that, the government can shave off up to 15 percent.


And if you owe past or current child or spousal support you could lose as much as 50 to 65 percent of your benefits. Delinquent child support and alimony cases are processed through the national Court Ordered Garnishment System. In these situations, the maximum reduction to your benefits depends on the state where you live. The garnishment is limited to either the maximum allowed under state law or the maximum under the Consumer Credit Protection Act, or CCPA, whichever is less.


Before your Social Security benefits are garnished, you'll receive several letters of notice from the IRS, and be given ample opportunity to make a pay arrangement. If you don't, the agency will start docking your monthly checks.



Info Seeker
Posts: 1
Registered: ‎02-13-2016

Re: Student loan debt

Message 4 of 5 (188 Views)

How can you tell if companies that call you are legitimate loan forgivness programs? Specifically a company called: Student Loan Advocacy

                               3954 Murphy Canyon Road

                                San Diego, CA 92123

Has anyone ever heard of this program? I don't feel good about giving info over the phone. Can anyone reccomend someone legitimate?

Info Seeker
Posts: 2
Registered: ‎08-18-2015

Re: Student loan debt

Message 5 of 5 (177 Views)

Most of these companies are not legitimate. There are very few forgiveness programs, you can sign up for them yourself. Public service loan forgiveness for teachers, police officer, social workers but very few others exist. There also income based repayment plans. You do not need a company to sign up for any of these. As long as we are talking about federal student loans you can contact your loan servicer and sign up for these programs yourself.