Ask Me Help Desk - 22 year old student loan

that i didn't even remember taking out (apparently it was for $400) Got a call a few months ago about a loan (which i paid off in 2004 and assumed this was the one they were speaking of) and was told if i paid it off to disregard the phone call...which i did...I receive ssd because i have lupus. They took $143 from my monthly payment last month (they claim they told me this was going to happen...NOT) I graduated college in 1987, they told me they sent correspondence in 1993, 1993???!!!!!! I graduated in 1987. Never got a bill, nothing....this is the first i've been contacted in 22 years. Of course that $400 has now turned into $900 and change because of interest and fees....What can i do? I cannot afford for them to take that much money from my ssd every month till this is paid off....and i also don't think i should have to pay $900 either...

Just how did they "take" this money from your account? Creditors cannot touch your SSD money. Go to your bank and tell them what happened and fill out whatever paperwork and sign it authorizing the bank not to allow this creditor to touch your account again. Show the bank you receive the SSD (even though they probably have a direct deposit to your account).

You need to get the $143 back by having the bank charge back this amount to the creditor that illegally took it from you. Have the bank look up and see what kind of paperwork they honored in order to just hand the $143 over to this creditor.

Call those people up and demand they provide you in writing their authority to deduct this money from your SSD money. What they are doing is illegal and needs to be stopped now.

Show this to your bank and tell them to put it back.

For your information about Social Security Benefits

Safe from Garnishment

Federal law makes Social Security benefits exempt from levy, garnishment, and assignment- 42 USC 407(a) states. "In general the right of any future payments under this sub chapter SHALL NOT be Transferable or assignable. AND NONE of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levey, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law".

This means that even if a creditor or debt attorney, collection agency has a judgement against you they CAN NOT garnish your SS payments nor can they take the money from you after it has been paid to you; for example, the portion of your bank account that is attributable to your SS benefits is EXEMPT from LEVY OR ATTACHMENT

it's the US Dept of Education....i thought they could?

Quote:

Originally Posted by twinkiedooter

Just how did they "take" this money from your account? Creditors cannot touch your SSD money. Go to your bank and tell them what happened and fill out whatever paperwork and sign it authorizing the bank not to allow this creditor to touch your account again. Show the bank you receive the SSD (even though they probably have a direct deposit to your account).

You need to get the $143 back by having the bank charge back this amount to the creditor that illegally took it from you. Have the bank look up and see what kind of paperwork they honored in order to just hand the $143 over to this creditor.

Call those people up and demand they provide you in writing their authority to deduct this money from your SSD money. What they are doing is illegal and needs to be stopped now.

The US Government - assuming this was a Government loan - CAN collect from SS benefits:

The Law is: "Can Any Creditor Go After SS Benefits? " Federal agencies can use this program [SS] to collect debts owed to these agencies. This includes student loan debt, food stamp overpayments, and other money owed to the government. Private creditors such as credit card companies cannot use this program. The I.R.S. can also take Social Security benefits to collect tax debts. The rules are different for this program. Not all of the same protections apply. You should contact a tax professional for more information."

You are supposed to get notices advising that the benefits are going to be seized. That didn't happen?

i didn't get notice until AFTER the money was taken. I called SS to ask them why $143 was taken from my monthly payment and they said they didn't know why but gave me the number to the DOE. I had absolutely NO idea until it was already taken out. DOE also claims they sent me notice about this, NOT so. I would have called to question this before the money was actually taken out had i known.

Maybe you can have them take a lower amount from your monthly check. Do they have your correct address? Verify this with them as well. They could have sent this notice to your last known address.

You never said it was a government student loan. Just a student loan. Different animal altogether.

Ask them to resend this notice to you so you can see just how they figured out the $900 amount.

i assumed it was from the school itself...$400? Hey, i was 22 what did i know?

Quote:

Originally Posted by twinkiedooter

Maybe you can have them take a lower amount from your monthly check. Do they have your correct address? Verify this with them as well. They could have sent this notice to your last known address.

You never said it was a government student loan. Just a student loan. Different animal altogether.

Ask them to resend this notice to you so you can see just how they figured out the $900 amount.

Quote:

Originally Posted by robyngar

[F]i didn't get notice until AFTER the money was taken. I called SS to ask them why $143 was taken from my monthly payment and they said they didn't know why but gave me the number to the DOE. I had absolutely NO idea until it was already taken out. DOE also claims they sent me notice about this, NOT so. I would have called to question this before the money was actually taken out had i known.

I have found that dealing with the "Feds" is much like hammering nails into your skull - very painful, you get nothing accomplished, you can't wait for it to be over. That being said I think I would request copies of what they CLAIM was mailed to you; of course, by the time you get them this will all be over.

It looks like they are entitled to collect from SS funds and aside from the logistics I don't know in the long run if you can accomplish much.