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Old student loans may reduce Social Security Disability benefits

The costs associated with attending a four-year university have skyrocketed. What was once a manageable expense is now a difficult financial decision that families must carefully weigh before allowing their children to commit to the rigorous educational and the financial pressures of the process. New Jersey students often turn to loans and other forms of money support to make their college dreams a reality. But, what they do not know is that their outstanding loans may be paid off with money they otherwise need to survive.

At present, the United States government can garnish the Social Security Disability benefits that a person receives for their qualifying illness or injury. The proceeds collected from that garnishment may then be used to pay off the individual's outstanding federal student loan debts. Though the rule does not allow a person's Social Security Disability benefits to be garnished completely a handful of senators have introduced a new bill that would prohibit this practice from continuing.

They fear that individuals who receive benefits, like those offered through the Social Security Administration, should not see their needed income taken for the satisfaction of old debts. A similar bill to this one was introduced two years ago in the Senate, but it failed to become law.

Individuals who receive Social Security Disability benefits do so because they are not able to work and support themselves on their own. Readers who have concerns regarding their benefits and possible garnishment issues are invited to speak with Social Security Disability benefits attorneys who provide legal services in their areas.

Source: Market Watch, "Senators want the Feds to stop plundering Social Security to repay student loans," Jillian Berman, May 1, 2017

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