Tag Archives: StudentDebt

Can Money Be Taken from My Disability Check to Pay Old Student Loan Debt?

According to a recent article in the New York Daily News, the Department of Education has been taking money from people’s disability checks to pay back old student loan debt. The reason that this is an issue, other than the fact that money that disabled people rely on to make ends meet is being taken from them, is that in many cases, the people are unaware that their old student loan debt could be forgiven through a disability-based discharge. The Daily News article features a report on a lawsuit that seven disability beneficiaries filed against that federal government. The lawsuit concerns the Department of Education’s debt collection practices, specifically, when it comes to collecting from disabled borrowers. In the suit, the people claim that the Department of Education is quick to use the Social Security disability benefit offset, which allows them to garnish money from disability paychecks to pay back…
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Is Student Debt Reducing Your Disability Benefits?

Have you heard that millennials have more debt than any other generation? Experts are blaming this on rising educational costs, but did you know those student debts are hurting your social security check too? Why Student Debt is Reducing Your Disability Benefits When a person defaults on their federal student loans, the government takes action. This usually involves garnishing your wages, but for some people this garnishment is applied to their Social Security check. A portion of a debtor’s check is taken out and applied to their student debt, but a new report is shedding some harsh light on these garnishments. Senators Elizabeth Warren and Claire McCaskill requested that the Government Accountability Office (GAO) review Social Security garnishment procedures. They wanted to know details about how benefits for seniors and people with disabilities were being slashed, and they weren’t happy with the findings. How Social Security Benefits Are Being Garnished…
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