Lose Social Security Benefits – Student Loans
A large majority of people take student loans to pay for higher education. The Supreme Court has decided to make social security benefits through a reimbursement from them.
No Benefits For You!
While millions borrow money for college and graduate school, not everyone pays this money. Failure to pay can result from circumstances such as a sluggish job market, failure to finish school and health problems. Of course, there are the select few who simply Welch on reimbursements. U.S. Supreme Court issued a decision on December 7, 2005, affecting people who are late in paying their loans.
In Lockhart v. United States, the Supreme Court was asked to rule on whether the federal government could take advantage of social security benefits to cover student loans. It was James Lockhart, a disabled man who sued the government to halt the reduction in their monthly check of $ 874. Lockhart suffers from heart disease, diabetes and other health issues and lives in public housing in Seattle. He argued the forfeiture of part of your check will not continue to buy their food and medicine. The judges agreed with Lockhart.
Under federal law, efforts to collect defaulted student loans had a limit of 10 years. In other words, the federal government prohibits hunting for delinquent taxpayers, after ten years. In recent years, however, Congress ended up with this limitation, resulting in a conflict of law. The Social Security Act contains language protecting benefits that are taken as part of debt actions. In this case, the Supreme Court ruled that such protections only apply to individuals, not the federal government. In short, social security benefits are no longer safe.
Currently, the total balance on outstanding student loans is approximately $ 30 billion. Of this amount, about seven million are delinquent or loan repayment. With 25 percent of the loans in the red, one can see why the government has an interest in collecting the debt.
Personally, I have no problem with this ruling. If you borrow money for school, you must pay back. Not doing so might deprive others of the same opportunity.
Tags: defaulted student loan, lockhart v. united states, social security benefits, Student loans, supreme court
