CO student loan is garnishing SSDI at 24%

[Karen Meyer]

Jurisdiction

Colorado

My daughter and has been on Social Security Disability for approximately 7 years for severe mental health issues; she also has a 16 year old son. During 2015 she asked for help from her dad and I because she was not getting her SSDI checks. We investigated and found that she had failed to attend an appointment that was necessary for her continued compliance with SSI. We helped her set and keep the appointment and got her checks reestablished but found that her disability income was being garnished to the tune of $230.00 a month for a defaulted student loan. As her income is only $942.00 a month, this represents approximately 24% payout. She is homeless because no one will rent to her with those stats. We tried to go through Nelnet and found that the doctor who did her evaluation this year stated that she needed reevaluation in 5+ years this was not acceptable to Nelnet who wants the paperwork to state 5-7 years. They referred us to College Assist Loans who referred us to Windham Pros. We started an account with them but have already run into problems even though I've taken copious notes and make many phone calls. According to your web site, even student loans can not take more than 15% of disposable income. We need help on how to apply this to our situation.

 

[army judge]

This link explains her issue perfectly.

Garnish Disability To Pay Student Loan? | Bankrate.com

Is she receiving social security disability, or supplemental security disability income?

Please provide the precise answer as it makes a big difference.

Despite the rule against certain levies, Social Security disability and SSI money is sometimes illegally garnished or levied from bank accounts.

Banks used to be allowed to comply with court orders for garnishment without checking the source of the income. In 2011 a new federal law requires bank to verify the source of the income before allowing the levy.

You might wish to take your daughter to a lawyer to discuss the matter. If any illegalities have occurred severe penalties could follow against the law breakers. Without a lawyer, many if these people will continue to run over her.

You can also write or call your/her US Congressperson or either US Senator. Elected federal officials will help in these difficult situations, and there is no cost to the constituent.

 

[army judge]

One more thought:

The government cannot take any amounts you get below $9,000/year or $750/month. No more than 15% of your total benefit can be offset.

Supplemental Security Income (SSI) cannot be taken. This is very important because collection agencies will sometimes claim that they can take SSI. This is not true and it is the type of statement that violates fair debt collection laws. Other benefits that the law says cannot be taken include Veterans Benefits and Benefits under Part C of the Black Lung Law. For a list of all federal benefits that cannot be taken, you can search the Internet.