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helphelpme2 · Feb 1, 2012, 10:44 AM

I have been paying child support but I've missed a few years and I owe 13000 I got a student loan for books and transportation housing and class material that I have to pay back.I deposited it in to my account and childsupport put a lien on my account and took it.what can I do?

JudyKayTee · Feb 1, 2012, 10:51 AM

What kind of student loan?

Past due child support is an exception to almost every "lien" rule/regulation. Federal student loans CAN be liened.

The child support agencies realize that children have to eat, be sheltered, wear clothing and care little where the money comes from once the Order is made.

kcomissiong · Feb 1, 2012, 11:06 AM

They didn't take the loan. They took an asset, your bank account. Once your money is in there, it is fair game, and it is up to you to prove that the funds in the account are from a protected source. I'm not 100% here, but I really don't think that a student loan is one of those sources.

smoothy · Feb 1, 2012, 11:08 AM

Most student loans are never given directly to the student to "deposit". They are almost always made out to both the school and the individual, and can only be cashed by the school.

I know mine was... and I know the ones at the banks where my wife has worked do that too. My wife deals with consumer loans on a daily basis. It prevents someone from taking out a "student loan" to use on anything other than school because of the rate structure makes the student loans lower than other types of loans.

Was this actually another type of loan you was using for school?

JudyKayTee · Feb 1, 2012, 12:30 PM

Originally Posted by kcomissiong

They didn't take the loan. They took an asset, your bank account. Once your money is in there, it is fair game, and it is up to you to prove that the funds in the account are from a protected source. I'm not 100% here, but I really don't think that a student loan is one of those sources.

Federal loans are NOT protected when it comes to child support. Other loans are "game," also, from the research I've done.

I'm amazed that a student loan was given with $13,000 in arrears!

JudyKayTee · Feb 1, 2012, 12:31 PM

Originally Posted by smoothy

Most student loans are never given directly to the student to "deposit". they are almost always made out to both the school and the individual, and can only be cashed by the school.

I know mine was....and I know the ones at the banks where my wife has worked do that too. My wife deals with consumer loans on a daily basis. It prevents someone from taking out a "student loan" to use on anything other than school because of the rate structure makes the student loans lower than other types of loans.

Was this actually another type of loan you was using for school?

Out of greenies but - good catch. As far as I know student loans ARE placed in the bank. Never saw one just handed to a person.

Maybe this was a direct deposit - ?

Hopefully OP will let us know.

smoothy · Feb 1, 2012, 01:44 PM

Originally Posted by JudyKayTee

Out of greenies but - good catch. As far as I know student loans ARE placed in the bank. Never saw one just handed to a person.

Maybe this was a direct deposit - ?

Hopefully OP will let us know.

I never saw one where the Student had free access to the money (meaning it never goes into a private bank account... because there is no guarnatee they don't spend it on something OTHER than legitimate school related expenses.)

The Federal loan I had didn't allow it... the federal backed student loans commercial banks and credit unions don't either...

My wife rejects student loan applications all the time because they think it can simply be paid to them ALONE, a few have even said they were going to buy a car with it because the rates were lower. A few even got indignant about being refused when they refused to provide the school info or the school being a cosigner on the check.

Fr_Chuck · Feb 1, 2012, 02:01 PM

How much was the student loan, was it merely the balance left over after the school got their money ?

But you are just out of luck, at least you have some of your back child support paid now so you don't owe them as much. Now you just have to find a way to pay the other money back.

bbuddmuc · Apr 1, 2012, 07:25 AM

Just cash the check and keep the money out in a safe

JudyKayTee · Apr 1, 2012, 07:27 AM

Originally Posted by bbuddmuc

just cash the check and keep the money out in a safe

Did you read the question? "... I deposited it in to my account and childsupport put a lien on my account and took it.what can I do?"

ScottGem · Apr 1, 2012, 08:09 AM

There are many types of student loans. Government sponsored loans are paid directly to the school and if there is an overage, the school will refund the student.

So this was probably not a government sponsored loan. And the support collection agency did not attach the loan in any case, they attached your bank account. Once deposited in your account it became commingled funds and fair game.

Frankly, I don't see anything you can do. Since it was not likely to be a government sponsored loan you don't seem to have any recourse. You got yourself into this position by not paying support. I also suspect that the mother of your child has had to apply for government assistance which is why they are being so aggressive in collecting it.

cdad · Apr 1, 2012, 08:45 AM

They may or may not have had the right to take the money in the first place as a student loan is not considered income. Because it is a loan for the specific purpose of education and not an income opportunity then it may be considered in a different category.

Ref:

Can Child Support Take My Student Loans

There are conflicting views on this and it’s best to consult legal help regarding this. However as one of our readers(Drew) just commentated, the money you receive from a student loan is not considered as income and therefore cannot be considered.

Can a Person Still Get a Grant or Student Loan Even If They Have a Lien For Child Support?

For reference there are new laws and new types of student loans that exist now that haven't in the past. So referring to personal experience may not apply.

Federal Loans | Student Loan Borrower Assistance

ScottGem · Apr 1, 2012, 02:38 PM

Originally Posted by califdadof3

They may or may not have had the right to take the money in the first place as a student loan is not considered income.

But they did not take a student loan, they attached a bank account balance. If they knew the source of the funds (and it can be proven) that is a different story.