Loan and Debt Consolidation

Can Student Loans place garnishments on a SSI disability check?

I’ve been disabled 3 years now and I have no more deferments. Edfund has threatened to garnish my disability awards. Is that even possible? I can barely afford to live on disability as it is…can’t even afford to live in a low-income housing.

Yes and no.

The other two people who responded don’t have all of the information and probably haven’t been through this same situation. First, I totally empathize with you. I had the same thing happen and I thought what will happen if they take my disability? I can’t work…

Yes, in some cases they can garnish SS but it depends on the amount. If it is under a certain amount then they cannot. I don’t remember the amount but they couldn’t garnish someone who only got $700 so it’s probably a little higher than that number.

It doesn’t sound like you are in default yet. If you are not then make arrangements soon so you don’t go there because it’s hard to get out.

Have you tried a forbearance? You can ask for a hardship deferment. They have different ways of handling the postponement of your student loans. There are exceptions that these people have but they try to strong arm us and take away the last bit of money that is there. Now, if you default the loans then they can take your tax return, etc., anything GOV.

I recommend that you call the US Dept of Ed. I had a lender threaten the very same thing if I didn’t send them money. I called the US Dept of Education because I was freaking out thinking that I’d lose the only security that I had. When I talked to them and told them that I was threatened like that they pulled my student loans from that agency and took them over, which erased some fees that the collection place added on.

If you are not in default yet then you have options. It is not legal for the creditors to call and harass you or to threaten you in any way. They will get away with it though if you don’t call the Dept of Ed.

There is also the Income Based Repayment plan that might be an option.

I would go to the National student loan database to find out the EXACT status on all of your student loans. A lot of time this info is wrong. It’s just best for you to have the right information.

Since you are on disability you should qualify for some local programs that help people consolidate their loans and just figure out all of the options for repayment. They can work with you as your advocate to find the best solution to get rid of student loan debt. Check with places that offer services to low income and do work with programs like Work First. I’m sorry I can’t remember the exact name of it, but there’s places to help you.

Finally, you can apply to get student loans discharged if you are disabled. It’s a hard process, but it works. If you are long term disabled then you really need to check out the disability discharge thing. When you apply then the Dept of Ed takes over again and you work with different people.

I hope that helps. First thing is to call the Dept of Ed and tell them what happened the last time you talked to Ed Fund. Try to recall names, dates, and specifics because that is super helpful in proving your case to them.

Good luck!

Student Loan Garnishment Holding You Back?