25 September 2012 0 Comments

Using Social Security To Pay Student Loans – An Idea Whose Time Has Come

” About twice as many Social Security recipients are not receiving all of their Social Security payments this year because they have unpaid federal student loans, according to a report by SmartMoney.com.

According to a 1996 law, the federal government has the authority to withhold portions of Social Security payments if defaulted debt is owed to the government, including federal student loans.

“It’s quite extraordinary because normally Social Security benefits can’t be touched by creditors,” said Deanne Loonin, a staff attorney with the National Consumer Law Center.

From January through August 6 of this year, the government reduced the size of about 115,000 retirees’ Social Security checks, almost double the department’s enforcement in 2011, according to data from the Treasury Department. In 2007, there were 60,000 cases and in 2000, there were only six cases.” READ MORE More Social Security Money Withheld Because of Unpaid Student Loans ABC 17 August 2012 Susanna Kim ABC News Blogs –

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