Retired person drawing state pension and social security. They have large student loan.
I seem to recall a court test recently whereby if defaulted, student loan folks could take up to 15% of Social Security benefits. But recovery is capped at that amount and nothing can be taken from other resources (bank accounts, a pension, etc.).
Not sure about this. Does anyone know more about it?
-HW "Skip" Weldon Columbia, SC
The collection of defaulted government student loans from the SS benefits is authorized in the "Debt Collection Improvement Act" -- I'm not familiar enough with it to confirm or deny the 15% cap on the collections. Google that Act for details. There was a federal case "Lockhart v. US" that may or may not be relevant -- again, google for details.
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