Are SSI payments used to pay off a defaulted student loan?

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Are SSI payments used to pay off a defaulted student loan?

I have a student loan that I haven’t paid off. I applied for SSI a few months ago, I’m still waiting to here if I have been accepted.  If I do get my SSI and they give me back pay, will the student loan force me to use my SSI to pay them back? This will be my only source of income. I haven’t worked in a few years due to my illness.

Asked on December 2, 2010 under Bankruptcy Law, Rhode Island

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The government has many legal options in the case of obtaining repayment for a defaulted student loan.  It can garnish wages, intercept any income tax refunds, and take some federal benefit payments, including Social Security retirement benefits and Social Security disability benefits.  However, it cannot seize Supplemental Security Income as reimbursement for a student loan.


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