Posted by: Disillusioned | March 11, 2010

Treasury Plans to Take Social Security from Elderly for Unpaid Loans

A little–noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old.

Social Security benefits are off–limits to creditors, such as credit–card companies and banks. But the U.S. can collect debts to federal agencies by “offsetting,” or withholding Social Security and disability payments.

The Treasury currently withholds benefits of 3.1 million Social Security recipients to recover defaulted student–, farm– and small–business loans, unpaid income taxes, amounts veterans owe for health care, and other debts to the government.

http://finance.yahoo.com/retirement/article/109011/defaulted-loans-may-haunt-seniors?mod=retire-planning

Advertisements

Responses

  1. There is a woman who lives in a nearby town who has recently recieved notice the her social security is going to be garnished. She is 80 years old and I think it is a complete disgrace and should be an embarrassment to our Government.

    Many who have defaulted have worked and paid taxes for years and because of a legitimate hardship were unable to make the payments. The payments requested are usually beyond the financial capabilities of most individuals and I don’t think that most realized this when they decided to get a better education.

    For those who have worked and paid taxes, have also helped pay for bailouts for the wealthy, they have funded the needs of other countries, while the benefits that once were promised to these U.S. citizens such as Social security will not likely exist for many Americans partly because it has been spent on things other then retirement benefits and due to the age for retirement will soon reach life expectancy. Will they be compensated for this? Its not likely!

    Its time for Americans to be offered higher education without the fear or realization of being financially crippled in the process.

    The Government needs to keep the small time collection agencies out of the student loan “business” and make payments affordable, while leaving the elderly alone. Education in America is no longer offered for the good of the people but rather it is a money making business that could be compared to a credit card, if you do not need it to survive then stay away from it because the end results could greatly out weigh the benefits.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: