10 things you need to know before voting in the midterm election. Find out more.

Reply
Info Seeker
0
Kudos
3776
Views
6
Replies

Student loan debt

3,776 Views
Message 1 of 7
Anyone affected by student loan debt? High interest rates, SS being garnished?
Report Inappropriate Content
Tags (1)
0
Kudos
3776
Views
6
Replies
Trusted Social Butterfly
0
Kudos
3775
Views

Re: Student loan debt

3,775 Views
Message 2 of 7

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


Just think. The world was built by the lowest bidder.
Report Inappropriate Content
0
Kudos
3775
Views
Valued Social Butterfly
1
Kudos
3767
Views

Re: Student loan debt

3,767 Views
Message 3 of 7

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.

 

http://www.huffingtonpost.com/jim-t-miller/social-security-checks_b_2315435.html

 

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.

 

 

Report Inappropriate Content
1
Kudos
3767
Views
Info Seeker
0
Kudos
1957
Views

Re: Student loan debt

1,957 Views
Message 4 of 7

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?

Report Inappropriate Content
0
Kudos
1957
Views
Info Seeker
0
Kudos
1946
Views

Re: Student loan debt

1,946 Views
Message 5 of 7

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.

Report Inappropriate Content
0
Kudos
1946
Views
Info Seeker
0
Kudos
1549
Views

Re: Student loan debt

1,549 Views
Message 6 of 7

I have heard that federal student loans, parent plus loans, are forgiven after a spicific length of time. How can I find this out? Who can I talk to that will give me honest answers? Should I consolidate to a private lender to reduce my rates? I am lost and don't know where to turn. Can anyone advise me please.

Report Inappropriate Content
0
Kudos
1549
Views
Info Seeker
1
Kudos
1521
Views

Re: Student loan debt

1,521 Views
Message 7 of 7

Me too. I am in my early 60s and still working. My student loan debt is high (six digits) as I started towards a PhD a few years ago. I am starting to regret it as my debt level has climbed and I am stuck at the dissertation level and have hit a brick wall. I am a licensed counselor who works for an EAP company through an insurance company which also specilalizes in Medicare and Medicaid populations.  I am ready to throw in the towel on the PhD and I am scared to death about the debt. I don't mind working past retirement age, but I want to be able to be there for my family (wife and adult kids and grandkids). Any advice for me, please?

Report Inappropriate Content
1
Kudos
1521
Views