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Advisory: If you take Social Security and are delinquent on your Student Loan - Yahoo! Finance
Consider this a “heads up” advisory! Starting “sometime this summer” the federal government may start garnishing some Social Security payments for beneficiaries who are delinquent on their student loans. While it may seem inconsistent that someone receiving Social Security still has an outstanding student loan, there are actually nearly half a million Social Security recipients who have delinquent student loans. And, as part of the Administration’s efforts for improving government efficiency, it’s likely that Social Security benefits will be garnished to recover that federal debt.
There are, of course, rules which limit how much the government can take from your monthly check (maximum 15%, and your monthly check may not be reduced to under $750), but there are also two legitimate ways to avoid this potential cut to your benefit – especially if you are currently disabled or if the cut would create a financial hardship. All of this is discussed in detail in this Yahoo! Finance – Motley Fool article by Sean Williams.