Can disability check be garnished for default student loans

Hi disabled,

Disability check is allowed to be garnished against student loans. Since your brother is not permanently disabled, he is supposed to do some job and repay the loan. Here disability check is considered as pay check.

As per as the repayment is concerned, you have two options open ??? rehabilitation and consolidation.

To rehabilitate your default student loans you need to pay 12 on time payments and the amount should satisfy your loan holder also. If you fail to pay even one amount within due date, the rehabilitation process is cancelled and one default loan cannot be rehabilitated twice.

If you go for consolidation all your loans will be combined under one loan amount at a lower rate of interest. As a result the monthly installment will be lesser and you can enter into a long term also.

You can undergo a counseling session if you feel it tough to choose your option between Rehabilitation and Consolidation.

in our divorce papers my ex was to pay me over $4,000 dollars which he has not done, can i garnish his disablility check as he is now on it.

shirley,

Federal student loans are such a special issue that cannot be compared with other kind of debts.

However; under certain circumstances disability benefits can be garnished for child support through family court and the related laws vary for different states. I would suggest you to consult a family court lawyer of your state.

I was diagnosed with schizoaffective disorder in 1998, and was wondering if mental illness fall under the category of a disability?

Hi Sophie,

Welcome to forums :D

Disability is defined as inability of working or earning money due to an injury or illness that might continue for an indefinite period. You can see the promissory note to know more about it. Please contact your loan holder and see what they recommend.

I am completed disable, can my check be garnish for payment on credit cards?

A disability check cannot be garnished.

Actually, since student loans are goverment money, disability checks can be garnished. If you can't prove total and permanent disability, or if the disability is a preexiting condition, meaning that the borrower was already disabled at the time of the opening of the loan, then this borrower is vulnerable to having his disability check garnished.

When someone is found to be NOT totally and permanently disabled, it means that this person CAN work a limited arrange of jobs. I suggest he step up to the plate, and ask about an income contingency loan rehabilitation.

oops, you're absolutely right Ari..Only child support and other government issues..such as student loans..can be taken from a disability check.
However, A credit card company can't garnish..
I wholeheartedly second your advice

TOTAL AND PERMANENT DISABILITY DISCHARGE
Total and permanent disability is the inability to work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death.
You must submit a physician????????s certification of total and permanent disability. The physician must certify that you are 100 percent disabled according to the definition of disability above.

As of July 1, 2002, if you are determined to be totally and permanently disabled, you will have your loan placed in a conditional discharge period for three years from the date you became totally and permanently disabled. During this period, you don't have to pay principal or interest. If you continue to meet the total-and-permanent disability requirements during, and at the end of, the three-year conditional period, your loan will be canceled. If you don't continue to meet the cancellation requirements, you must resume payment. For more information on qualifying for this discharge, contact your loan holder

I have been on total disability since 2002. I have applied for a discharge of my student loans numerous times and each time they deny me saying that according to their definition I'm not permenantly disabled. I have been unable to work for a little over 10 years and now an 8600 dollar loan is now 24,000 dollars because they refuse to accept my disability!

If you are not able to qualify for permantent disability, you need to consolidate your debt under the Income Contingent Repayment plan with the Direct Loan Program. Your income will probably be low enough to get either a very low or zero payment. This will cost you much less than your disbility being garished 15%.

My husband financed a $20,000 student loan for his son through Citibank. He completed the application and indicated he was disabled with a monthly income of $1300 (part of his disability is a brain injury due to an accident). My stepson is NOT a co-signer. Do they not look at the applicants financial status, or do they just grant loans because they can?

I know his mind could not comprehend the depth of what he was doing, but the fact they even financed him with no co-signers, etc....is just mind boggling. Between this loan, and massive credit card debt he has ran up, he has about $40000-$45000 in debt, all financed under his name with these companies being well aware he was unemployed. Is anyone aware if these debts can be consolidated through a credit repayment program (credit counselling?)?

My question is,why did you and your son allow him to do this? Is your son making the payments on this loan or has it defaulted?

I work during the day time so I had NO idea this was going on until I came home and found the packet of info on my coffee table. That little episode led to divorce papers being drawn up because I indicated I apparently cannot trust him, but I don't know how all this will play out in court since the debt is in his name, but he is considered "disabled, and I do NOT want to get stuck paying him alimony.

Being a spoiled, ungrateful 20 year old, my stepson apparently felt as though this is the least my husband could do for him since he & his mother divorced when he was just a small child, and my husband wasn't really part of his life. With my husband's medical problems and state of mind, he was very easily manipulated. The stepson didn't co-sign anything, so of course he's not making the payments.

I contacted Citibank to go over the situation and explain that my husband is disabled and he can't afford this and all the drama that goes with it. Unless I have power of attorney, or my husband is declared mentally incompetent, there is nothing I can do, and even then, he will still be held liable for the debt.

I am being told by sallie mae that even though i am premently disable i can still be garnished due to me being the co-signer on the consolidation with my wife before i got disabled. Even after i had doctor fill out the disability form. They sent letter saying i don't qualify.

Was this a private student loan? If so, you won't be able to get it discharged you will have to pay it. I am disabled and had a private student loan but they worked with me and reduced my payments luckily.

They are the only student loan company offered to us when we went to college. Sallie Mae is the company, which they also use NCO collection agency working with them also. Reduced payment at this time won't help me. I am at verge of bankruptcy trying to support 4 ppl.

Bankruptcy wont help with your student loan....they are non dischargeable under the BK rules.

Is your wife not making payments on this??

Nah she has medical problems and has been trying to get ssi for over 3yrs. This time we have a lawyer on her case so maybe she will get it. It not like i don't want to pay but atm can't even pay the interest on the payment like they been making us pay for a while. We lost her payments from my disability account when my youngest turned 16. We have used up the forbarence and deferrments.They told her that they are going to garnish 30 percent of my check which might just put us on the streets. We have been low income ever sence i got disabled.

Federal loans can only garnish up to 15% of disposable pay. Only if there is a judgment can they go higher and that would be to your state max.

iI AM PERM. DISABLED...IN JANUARY I MADE SPECIAL ARANGEMENTS TO PAY BACK MY $1000.00 LOAN IN $50.00 PAYMENTS A MONTH UNTIL PAID OFF THIS WAS AGREEMENT BETWEEN DCS COLLECTIONS...I HAD MONEY ORDER READY TO MAIL FEB. 3RD WHEN I GET MY DISABLITY AND I FOUND WHERE THEY GARNISHED MY CHECK FOR $190.35 A MONTH...THIS IS PITIFUL FOR ME AND MY HUSBAND LOST HIS JOB OVER A YEAR AGO AND CANNOT FIND WORK IN OUR AREA...WE NEED MY DISABILITY CHECK TO LIVE ON...PLUS MAKING A PAYMENT AGREEMENT WITH ME THEN GARNISHING MY CHECK WAS DOWN RIGHT DECITEFUL...CAN SOMEONE GIVE ME ANY NUMBERS TO CALL TO HELP ME WORK THIS OUT?? MY AMOUNT OWED IS DOWN TO A LITTLE OVER $900.00...THANK YOU

PLEASE READ MY MESSAGE AND SOMEONE GIVE ME ADVICE???THANKS

Teet....keep in mind that you posted late in the evening. Some of us do sleep. We are not on the board 24/7.


Have you called DCS? That would have been the first place to call. DCS is not garnishing you though...it would be the guarantor of the loan. Do you know who that is? You should have received plenty of written warning in the mail that this was going to happen.

Can a bank account for a community organization get garnished? My name is on the account with several other people. Everyone contributes to this account. It has been hit twice.

I have heard of it happening

Do the group have any recourse to get their money back? I didn't get any court papers or anything.

Were you served a summons???If not, you need to check with the court and review the service papers. If you were not correctly served, you can have the judgement set aside.

Can a car place garnish my wages? I have a truck that needs to go back to them can they garniched my social security chec?

Can Social Security Disability benefits be garnished for Private Student Loans? If so, what is the process after loan goes into default status? TIA!

Private loans cannot garnish your SSI checks.

Hi my name is diana,
i have a default student loan because i was sick off and on, unemployed/employed off and on. Now my gyn and primary care physicians has listed me as permanently disabled to work. Before i became disabled to work the loan holder garnished 15% of my paycheck bi-weekly and they took my 2009 income tax refund. Please advise if there is something i can do to prevent them from getting my refund this year. At the present time i have no income but i have filed for social security disability.

Nope...you would have already had to be in repayment by now. Or you would have need to consolidated with direct loans under the income contingent repayment plan.

I was recently determined to be totally disabled. I cannot work...there is NO WORK found that I can do, this was determined at my disabilty hearing by a vocational expert. I have a "ever growing...out of control" student loan that I have had held over my head for about 13 years. I will only be getting 800.00 a month and 15% taken from it is going to make it almost usless in helping me pay toward the medical help I need.

Can they, will they take the 15 % anyway? And, as I haven't recieved any monies as od yet (it's stil in process), I am told I will recieve a "lump-sum" to cover the time I have been determined to be disabled until now Feb. 2010. Can "they", the student loan, take all, some, ANY of this money from me? I have been waiting...living in poverty, begging and borrowing just to see a pain doctor....now I'm afraid that the student loan is going to "come in a swoop-up" my back pay as well as garnish my 800.00 a month pittence! I a suicidal over this...I have had to wait THREE YEARS just to get help, HAVE TO PAY MY LAWYER 4000.00 FOR FILING PAPERS AND MAKING PHONE CALLS....ETC.

How do they expect a person to live....or is a dead body going to be the answer they seek to get their student loan money back?! I am lost!! I DO have a bankruptcy lawyer all paid-off from money I recieved from an accident that caused most of my disability...but is it too late for him to help me now? I have not been in contact with this lawyer for a few months because I am home-bound and have trouble even getting out-side to do ANYTHING! What SHOULD I do? What can I do? Everywhere I look ist seems to say that they will take the money and that "they" don't go by or "answer to" Social Securiy's disability detrmination anyway!

Please help...Iam in an abusive, controlling relationship and was hoping this money could help me get out of THAT as well! I am SO dismayed by what I've found out that I am considering death as the ONLY true WAY OUT!

Are you in default? Are these federal or private loans?

Simple solution is to apply for the permanent disabiltiy discharge if it is federal. If that fails, you consolidate thru the Direct Loan Program under the ICR or IBR repayment plan. Your payment will probably be zero but your loan will be considered current.l

My husband is disabled and has terminal cancer on top of that ( he was diagnosed 2 years ago). The federal student loans are older than his diagnoses. Can we file to have the loan discharged under the permanent disability discharge?

We are currently in a bankruptcy case for all our other bills that have ran up do to a medical situation with me and I can only find a 20 hour per week job. There is never enough to live on anymore.!

Read the post above your post. It will answer your question.

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It is very difficult to have any student loan discharged. When did the disability occur? If it predates the loan, you basically will be SOL.

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State and federal debt can be deducted from SSI checks.