If you default on a federal student loan,can a collection agency go after social security benefits?
They told me not to retire anytime soon or file for state disability benefits.
OMG I don’t know who to believe.
Yes they can take 15% a month. Formerly these benefits were totally exempt; now you’re left with a maximum exemption of $9,000 each year. The Debt Collection Improvement Act of 1996 (31 U.S.C. Section 3716(c)(A)(i)) now allows federal government agencies to offset Social Security Benefits
You should read the information on the Federal Student Aid Website, there is a section on hardship for SSI.
http://www.ed.gov/offices/OSFAP/DCS/disputes.html#Hardship-IRS
