Feds seize unpaid Social Security checks to pay off student loans?

by ~ The Rebel ~ Posted 2012/08/09 03:13:02

Related Topics: Student, Money, Security, Debt, Loan, Work, Government, Loans, Saving, Secret, Size, Student Loans, fed, 6

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It’s no secret that falling behind on student loan payments can squash a borrower’s hopes of building savings, buying a home or even finding work. Now, thousands of retirees are learning that defaulting on student-debt can threaten something that used to be untouchable: their Social Security benefits.

According to government data, compiled by the Treasury Department at the request of SmartMoney.com, the federal government is withholding money from a rapidly growing number of Social Security recipients who have fallen behind on federal student loans. From January through August 6, the government reduced the size of roughly 115,000 retirees’ Social Security checks on those grounds. That’s nearly double the pace of the department’s enforcement in 2011; it’s up from around 60,000 cases in all of 2007 and just 6 cases in 2000.

Picasso's Cat 2012/08/17 14:04:56

+1
The federal student loan is the only loan in America you can't get rid of, no way, no shape, and no form of bankruptcy can eleminate a federal student loan. You are told this when you get one, but most people don't take it to heart when they want the money.
So you have people that think they do not have to pay back that money, leaving the rest of us taxpayers to pay it for them.
Not gonna happen, because now they can take your social security, and it's not like people are gonna be put in the street, maxium student loan garnishments from social security checks is 15%, and the average is 9%. So no one is gonna be broke, but they might have to cut back on the lobster cakes, Lol.
It's what happens when you try and stick the txpayers with "YOUR" bill, supprise, you have to pay it off anyway!!!!

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Flamingo Flame Gem *AFCL* 2012/08/09 04:04:38

+2
A student loan is a bank loan.....You borrowed it, you have to pay it back.

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the judgebigdogeagle 2012/08/09 03:21:36

+1
My Dad worked as an accountant from the 60's to the 80's & told me of several millionaires who never ever paid off their student loans.But I would not like it cause where are the high paying jobs after school.

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