Q & A
Can my Social Security benefits be reduced for an unpaid student loan I co-signed?
Full Question: I co-signed a student loan for my child. My child, unbeknownst to me, was not able to pay the payments after graduation from college and the loan is in arrears. The loan is a federally guaranteed student loan. Now my Social Security retirement check is reduced by over $150 per month to pay back the arrears. I thought Social Security benefits are protected from collection. Can you help me stop this reduction?
Answer: I am not surprised that your Social Security benefit has been reduced for an unpaid federal student loan. More and more, the federal government is going after the Social Security benefits of federally guaranteed student loan recipients or co-signers to pay off delinquent loans, reports the US Treasury Department. Since the 1990s, various federal laws were passed or amended that granted the government the power to seek repayment from Social Security benefits. The courts, including in a 2005 Supreme Court decision, agreed and upheld this power. The government has since ramped up its collection from Social Security benefits. In 2000 there were only six cases where Social Security checks were reduced for student loan arrears. Currently, this year through August, Social Security checks of 115,000 retirees have been reduced because of federal student loan arrears. Read more…
Source: Legal Aid Service of Northeastern Minnesota-Duluth, via LawHelpMN.org – 8/24/2014
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