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For Unpaid College Loans,Feds Dock Social Security
SmartMoney ^ | 8/7/12 | Annamaria Andriotis

Posted on 08/07/2012 6:48:12 PM PDT by nascarnation

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.

(Excerpt) Read more at smartmoney.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: debt; educationfunding; socialsecurity; studentloans
Deeper and deeper in debt we go. The number of Social Security recipients who are being garnished for student loans now exceeds 100,000
1 posted on 08/07/2012 6:48:19 PM PDT by nascarnation
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To: nascarnation

When the Occupy Wall Street freeloaders realize they will not get any Social Security Checks, it is then we will see them really using the sidewalks for public toilets.


2 posted on 08/07/2012 6:56:38 PM PDT by Presbyterian Reporter
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To: nascarnation

I practice debtor-creditor and bankruptcy law. Social Security is untouchable by any creditor EXCEPT the federal government.


3 posted on 08/07/2012 6:58:25 PM PDT by Huntress ("Politicians exploit economic illiteracy." --Walter Williams)
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To: nascarnation

Yep.

And the really neat thing is that just because you’ve been declared disabled, and are receiving disability income from Social Security, does not mean that you’re disabled with respect to student loans.


4 posted on 08/07/2012 7:00:50 PM PDT by jdege
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To: nascarnation
Many of these retirees aren't even in hock for their own educations. Consumer advocates say that in the majority of the cases they've seen, the borrowers went into debt later in life to help defray education costs for their children or other dependents.

I advise my clients to never, ever co-sign a student loan with anyone, including their spouses, children, or grandchildren. It is a recipe for financial disaster. If you must co-sign, get a regular bank loan. You've got a lot more options in dealing with a private creditor than you do with the federal government.

5 posted on 08/07/2012 7:07:35 PM PDT by Huntress ("Politicians exploit economic illiteracy." --Walter Williams)
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To: nascarnation

1. These people got all their quarters in and the government never made them pay up?
2. Now they’re on a fixed income, and this is when the government chooses to address it?
3. Meanwhile, folks who have never worked a day in their lives inside the U. S. now get government freebies out the kazoo
4. We build multiple $500 million dollar schools in one U. S. city alone, where most of the students are children of illegal immigrants
5. We give away free health care to untold millions

You know what folks, I think these people should pay up, but there’s something very very fishy going on here.

Where’s all the sympathy that illegal immigrants get, if we mention they should be paying their own way?


6 posted on 08/07/2012 7:08:39 PM PDT by DoughtyOne (Nope 2012)
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To: nascarnation
Some student loan borrowers 25 to 40 years ago or so seemed to think they could forget paying those funds back and were vocal about it, it's come back to bite them.

When people borrow money or cosign for a person borrowing money they had better be prepared to pay it back, at least that's the way I was brought up.

It's a simple matter of being responsible for one actions but there are far too many who don't take that responsibility.

7 posted on 08/07/2012 7:09:00 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: nascarnation

I say good idea. I mean, hell, judicial decisions and contracts don’t mean much anymore.


8 posted on 08/07/2012 7:09:19 PM PDT by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: Huntress
I practice debtor-creditor and bankruptcy law. Social Security is untouchable by any creditor EXCEPT the federal government.

Plus the student debts themselves are non-dischargeable in BK, n'cest–ce pas?

9 posted on 08/07/2012 7:10:18 PM PDT by martin_fierro (< |:)~)
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To: jazusamo

Obama could get a lot of votes by doing something for student loans.


10 posted on 08/07/2012 7:11:36 PM PDT by ilovesarah2012
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To: ilovesarah2012

Zer0 has already thought of the votes he can get on this and has tried to pursue it, he doesn’t miss a trick.


11 posted on 08/07/2012 7:20:30 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: martin_fierro

Essentially, that’s right. The bankruptcy code provides for discharge in the event of “undue hardship,” but that is damn near impossible to prove. To qualify, you pretty much need to be permanently and totally unable to work.


12 posted on 08/07/2012 7:20:41 PM PDT by Huntress ("Politicians exploit economic illiteracy." --Walter Williams)
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To: ilovesarah2012
Obama could get a lot of votes by doing something for student loans.

That'll be one the October Surprises...full forgiveness.All done by Executive Order,of course.

13 posted on 08/07/2012 7:21:33 PM PDT by Gay State Conservative (The Word Is Out,Harry Reid's Into Child Porn.Release All Your Photos,Harry!)
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To: jazusamo; All
"Zer0 has already thought of the votes
he can get on this and has tried to pursue it,
he doesn’t miss a trick."



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14 posted on 08/07/2012 7:27:52 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: musicman

BTTT!


15 posted on 08/07/2012 8:08:05 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: Huntress
I practice debtor-creditor and bankruptcy law. Social Security is untouchable by any creditor EXCEPT the federal government.

Sounds like God's will. ;-)

16 posted on 08/07/2012 8:11:07 PM PDT by Tau Food (Tom Hoefling for President - 2012)
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To: Gay State Conservative; ilovesarah2012; jazusamo

I predict Obama will make some announcement that makes it sound like he’ll forgive student loans, but it will be essentially meaningless. The federal government will never give up the revenue stream from student loan payments, and Obama would never surrender the kind of control that massive student loan debt puts on borrowers. The most he’ll do for borrowers is come up with some measure to screw private student lenders.


17 posted on 08/07/2012 9:08:11 PM PDT by Huntress ("Politicians exploit economic illiteracy." --Walter Williams)
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To: Huntress

Student loans go to finance the liberal education complex and drive up the cost of higher education. They should be abolished. Banks should make loans on the ability of people to repay and have security. They should not give loans guaranteed by the govt for causes. Without student loans..colleges and universities would have to get serious about creating a competitive method of education. Fewer big buildings..lower pay for none producing elites and more inovative solutions to getting students.


18 posted on 08/07/2012 10:36:34 PM PDT by Oldexpat
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To: Huntress

Student loans go to finance the liberal education complex and drive up the cost of higher education. They should be abolished. Banks should make loans on the ability of people to repay and have security. They should not give loans guaranteed by the govt for causes. Without student loans..colleges and universities would have to get serious about creating a competitive method of education. Fewer big buildings..lower pay for none producing elites and more inovative solutions to getting students.


19 posted on 08/07/2012 10:36:34 PM PDT by Oldexpat
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To: Huntress

I went back to school in 2001, for a degree in business/finance. The Government allowed me to apply for loans to get a degree in a field that was already not playing by the policies my professors were teaching. How can a system offer to educate me, (offered and based on jobs that would be available once I graduated; knowing the system was already corrupt and damaged) loan me the money to pay for the education, placing me in debt and once I obtained the degree, say, during the time you were going to school, a corrupt system was raping the whole lot, the markets are fixed not free, mortgage back securities are flawed, banks don’t have to hold a traditional percentage of deposits because they are selling the risk of loans, lending laws are not ridged like your professors taught you, monetary policy is not what they required you to lean, (so sorry you failed that midterm) etc. etc. etc. and hold me libel for the bill? When a service or product is offered, is there not the responsibility to disclose? Am I wrong to feel like I was duped into accepting a debt when the services I paid for did not disclose the true nature of the American Financial system? Clinton started the mess, the banks jumped on board with the use of derivative bond markets, LIBOR has just been uncovered, and my phone rings asking where payment is, knowing I haven’t been able to find a job in this market. If I am wrong, help me see the error in my thinking, but to me it seems I was offered the financial backing to obtain a debt, yet the ability to repay the debt was already known to fail.


20 posted on 08/08/2012 12:26:12 AM PDT by Golfinsocal
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To: nascarnation

The people who are behind on their student loans are just as liable as anyone who defaults on any loan. They knew that going in.

Now the squeal that the lender is garnishing their SS check since they were not responsible enough to pay back the loan from the GOVERNMENT. The GOVERNMENT is the lender! Why should it continue to pay you (the retiree) while you don’t pay it?


21 posted on 08/08/2012 4:37:09 AM PDT by DH (Once the tainted finger of government touches anything the rot begins)
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To: Golfinsocal

Student Cannot Find Job, Sues Monroe College Over Tuition
Do Schools Have More Duties Than Merely Providing an Education?

http://voices.yahoo.com/student-cannot-find-job-sues-monroe-college-over-tuition-3941714.html

When students sue their schools because they can’t find jobs

http://www.examiner.com/article/when-students-sue-their-schools-because-they-can-t-find-jobs

Can’t Find A Job After College? Sue!

http://www.theatlantic.com/business/archive/2009/08/cant-find-a-job-after-college-sue/22658/#


22 posted on 08/08/2012 5:07:51 AM PDT by ilovesarah2012
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To: Huntress

I read somewhere that 90% of new student loans have parents as the cosigner - lenders are requiring it.


23 posted on 08/08/2012 6:42:32 AM PDT by tbw2
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To: Huntress
The most he’ll do for borrowers is come up with some measure to screw private student lenders.

I believe you nailed it, Huntress, that's what he'll do if he possibly can.

24 posted on 08/08/2012 8:18:36 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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