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NO! First of all a collection agency does not have legal power to attach or seize any property belonging to a debtor. Due process of law must be followed, meaning a lawsuit. If the creditor wins the suit (they always do) a judgment is entered against the debtor. The judgment creditor can then execute the writ against any non exempt property belonging to the debtor. All SS benefits are 100% exempt from creditor action of any sort. The collector/agency should be reported to the attorney general's office of the state in which the debtor resides, as they have violated the FDCPA by making false statements, using coercion and intimidation tactics and so forth. No. All Social Security Benefits are exempted by Federal Statutes from creditor action....by Macky (macky83@juno.com)

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17y ago
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14y ago

Yes, the Dept. of Ed. allows collection companies to garnish up to 15% of SSI benefits for Default Federal student loans.

There are only 2 ways to get out of default on your Federally Guaranteed student loans.

  1. Contact your collection company or student loan servicer and request to enter the rehabilitation program. Most people qualify, but I have seen some refused when the default is over 10 years old. In the rehabilitation program, you will need to make 9-12 on-time payments in addition to your garnishment. After the 9-12 on-time payments, they should stop the garnishment, but you will stay in a default status until your Rehabed loans are sold to a new lender. In the past, that was an easy process, but in these turbulent financial times, other lenders are not buying rehabed loans. So, with this option your loans will stay in a Default status for the forseeable future.
  2. The second way you can get out of default and have your garnishment lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will probably not release the loan for consolidation while in a garnishment stage. The good news is, there are a few companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. One good example is Default Management Services, Inc. They are the cheapest I have seen and give a 100% money back guarantee on their services. You can Google the company name to get the phone #. Ask for Doug.
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13y ago

(in the US) student loans are guaranteed by the government for the sole purpose of the borrower completing their education and becoming a contributing (and taxpaying) member of the community. As a general rule you are free from being garnished by the lender because the government guaranteed the lender they would be paid. How the government might approach you for your repayment to THEM is another matter.

I have actually spoke with social security and they state that social security SSI can only be touched if you owe child support. It is need based and not even the government can take that from the individual. Call the Social Security/Disability office for further info.

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10y ago

No, they are protected from creditor judgments under federal statutes.

However, all Social Security benefits awarded to a non custodial parent are subject to garnishment for child support obligations.

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18y ago

All SS benefits are exempt from creditor actions. However a vehicle and a house are considered secured debt and can be subjected to seizure and possible sale by the lender.

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8y ago

bs i had student loans being garnished from my disabilty ss

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17y ago

No. All SS, SSD and SSI are exempt from creditor action.

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14y ago

No, all SS benefits are exempt from creditor garnishment, the exceptions are child support obligations and in some instances federal tax arrearages.

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11y ago

No. Federal law prohibits a court from ordering that any government subsidy be used for the payment of a debt.

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Q: Can there be a wage garnishment on your ssi benefits for defaulted student loans?
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Can new york state garnish wages for a student loan with out going to court?

If they are Federally Guaranteed student loans, then yes they can. If they are private student loans, then no they can't. You can consolidate the defaulted loans and skip the garnishment. This company can help you: www.defaultms.com


How do you stop a student loan wages garnisment?

You should consolidate your defaulted student loans and stop the wage garnishment. You can get an income-based repayment plan and pay as little as $0 a month, defending on your income and dependants. If you want help with the consolidation of your defaulted student loans, click on the link below


Is wage garnishment for a defaulted student loan considered an outstanding judgment?

In the US, a student loan collection company that is garnishing your wages will already have a court judgment against you. You can get out of the judgment and garnishment by consolidating your loans. Click the link at the bottom of this text box to get help with the consolidation of your loans.


Can you get your student loans paid for by joining the peace corp?

if you paid off a Defaulted student loan and don't have any other defaulted student loans, then you are eligible to get new Federally Guaranteed student loans


Maximum wage garnishment for student loans?

The Dept. of Ed. guideline is 15% of your wages, but I have seen it go as high as 25%. If you need help getting out of default and getting the garnishment lifted, a company called Default Management Services, Inc. can help you. Google the company name to get the phone #. Ask for Doug, he is knowledgeable.


If you catch up a defaulted loan can you get a another student loan?

In the US, yes you are eligible for additional student loans if you rehabilitate, bring current, or consolidate your defaulted federal loans. If you need help with the consolidation of your defaulted loans, click the link below.


Wage garnished student loan paid off can you get another student loan?

Yes, if you paid off a Defaulted student loan and don't have any other defaulted student loans, then you are eligible to get new Federally Guaranteed student loans.


Can you receive the GI Bill if you have defaulted student loans?

No they check on that.


How can you stop garnishment from your wages from student loans?

This company can help you stop the wage garnishment: www.defaultms.com


Is it possible to reconcolidate defaulted student loans?

In the US,it is certainly possible to consolidate your delinquent or defaulted student loans. Most lenders will not accept them, but a few will. If you need assistance with the consolidation of your loans, click on the link at the bottom of this text box.


How do you stave off wage garnishment on loans secured by a theft of your identity?

In the US, if you have student loans in garnishment, you can rahabilitate them for 12 months or you can consolidate them.


Can you be denied Medicaid or Section 8 due to student loan default?

No, but some federal benefits (like Social Security) can be offset to satisfy defaulted student loans. Some borrowers who have not yet defaulted also qualify for a deferment of their student loan payments while receiving public assistance.