Social Security and Student Loans
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Can the Government Garnish Your Social Security?
How Defaulting On Student Loans Impacts Social Security
Report the default to the credit bureaus, damaging your credit Prevent you from purchasing or selling assets, such as real estate Withhold tax refunds and federal benefits and use them toward your student loans Garnish your wages
Can Student Loans Be Forgiven if You're On Social Security?
Garnishment Limits on Social Security
Avoiding Social Security Garnishment for Student Loans
Student loan rehabilitation: With this option, you must agree in writing to make nine reasonable monthly payments within 20 days of the due date. After you’ve made these nine payments within a 10-month period, your loans will be back in active status. If you opt for loan rehabilitation, the record of the default will be removed from your credit report (unless you’ve already exercised this option in the past). Student loan consolidation: Alternatively, you can get your student loans out of default by applying for Direct Loan Consolidation. You must either agree to pay your loans back on an income-driven repayment plan or make three on-time, full monthly payments before you apply for consolidation. Unlike rehabilitation, consolidating your loans won’t remove the default from your credit report.
Student Loan Repayment Options
Standard repayment: Make fixed monthly payments over a period of 10 years Graduated repayment: Make smaller monthly payments that gradually increase over 10 years Extended repayment: Make fixed or graduated payments over a period of 25 years. If you consolidate, you may be able to choose a term as long as 30 years, depending on how much you owe.
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