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Monday, January 02, 2017

Lawsuit: Government Illegally Garnishes Disability Benefits To Repay Student Loans

Earlier this month, a Government Accountability Office report found that $171 million was garnished from older Americans’ Social Security benefits in order to repay federal student loan debts. Now, one of those borrowers is suing several government agencies accusing them of taking money from his monthly disability checks despite the fact he was eligible for a student loan discharge.

The lawsuit, filed in September and amended last week, accuses the Department of Education, Social Security Administration, and Department of Treasury of unlawfully garnishing his Social Security disability benefits to collect on defaulted student loans despite the fact he was eligible for a full discharge of the debts.

According to the lawsuit [PDF] – which also names Dept. of Ed. Secretary John King, Treasury Secretary Jack Lew, and Social Security Administration Commissioner Carolyn Colvin – the 67-year-old man received a notice in 2013 indicating that a portion of his disability benefits would be garnished in order to pay off the student loans he obtained in the 1970s.

While the man attended college for a short time, he dropped out due to hospitalizations, and eventually defaulted on the loans. In 1973, he was diagnosed with schizophrenia and began receiving Social Security disability benefits.



Anonymous said...

They, the government, goes after the most vulnerable of our citizens which may owe them money, yet a false celebrity such as Al Sharpton who is known to owe, probably millions, to the government run around in custom suits and top hotel rooms without asking for a dime from him. It is so unfair and wrong, while Sharpton is eating prime rib these people, which are truly disabled, have to decide between food or new shoes!

Anonymous said...

What's wrong with that? The accrued that debt and they still owe it.

Anonymous said...

I realize this is the disability section, but citizens contribute all their lives while working and it is mandatory. Then later in life when a return is needed, they are told the system is running low on funds. Illegals draw from a system they never contributed to. What a government we have, they don't even contribute. And they don't understand why the chosen one lost the election. Drain The Swamp!

bayman said...

He is suing someone for taking back the money he borrowed? You borrow it, you pay it back. Plain and simple. Sick and tired of hearing about people who think they are entitled to something.

Anonymous said...

Those who say this is wrong might think differently if they had directly loaded their money to the individuals who don't want to hold up their end of the bargain.

Anonymous said...

So, we forgive all these debts? Who in their right mind would continue to lend under these conditions?