Previously the first $750 of monthly Social Security retirement benefits was exempt from levy by the I.R.S. A recent law has overturned that and your Social Security benefits can be garnished for 15% of the amount, regardless of the amount you receive.

Does the $750 exemption still apply to garnishment for Student Loans or was that also overturned ?

Thanks,
John

I have never heard that social security benefits can be garnished; to the contrary.

Follow-up: Can my Social Security be tapped to pay defaulted student loans?


QUESTION:


Are survivors' Social Security benefits liable to garnishment by the government to satisfy defaulted student loan debts?


ANSWER:


Yes. The Debt Collection Improvement Act of 1996 (31 U.S.C. Section 3716(c)(A)(I)) now allows federal government agencies to offset Social Security benefits to collect debts such as student loans. Formerly these benefits were totally exempt; now you're left with a maximum exemption of $9,000 each year.

Live and learn

Cansurvivorsbenefitsbegarnishedforstudentloansifth eyareunderninethousanddollars?