The country is currently facing a student loan epidemic—last year, a report released by the Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Education showed that student loan debt stands at more than $1 trillion nationally.
With this in mind, it should be noted that if you collect Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and you have outstanding student loan debt, your income could be garnished if you slip into default.
Nearly 15 percent of student loan borrowers are currently in default on their loans, with an average balance of $23,300—a troubling statistic when you consider that discharging student loan debt is a very hard task. While there are limits on how much can be taken, if you have federal student loans, your benefits from both the US Department of Veterans Affairs and the Social Security Administration can be garnished.
It should be noted that there is only one way to eliminate or discharge student loan debt—through providing proof of total and permanent disability during bankruptcy. This is very rare—even for people collecting SSDI or SSI benefits.
The best way to avoid having your benefits garnished is to work with your lender. Many lenders offer income-based repayment options, forbearance and deferment plans. If you are collecting SSDI benefits and having trouble paying your student loans, you are not alone—many Americans are struggling with this reality.
If you or a loved one has questions about disability benefits, do not hesitate to contact our Tulsa Social Security disability lawyers for a free consultation. You may also reach us by phone at (918) 587-0050.
Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers