Student Loan and S.S.I. Garnishment

[Kat Monduex]

I have tried researching this with no success. Does any one know if The Department of Education and/or one of their collections agencies can direct the Department of the Treasurey to take 15% of my SSI check? I have seen items on the web concerning SSDI but not SSI.

Another question is; can two collections agencies pursue the same debt at the same time?

In 2005 I filed for Bankruptcy (Chapter 13 I believe) The lawyer I had at the time mentioned my Student loan debt but did not put it in the column asking for dismissal. He said he had no expertise in that area and it would cost a lot more to get it dismissed. I have since learned that I could have asked for dismissal on the grounds of Undue Hardship. I have read the means test for it and I definately would qualify.

However when I mentioned it to the collections agent yesterday he said that they don't consider Undue Hardship any more. I think he is a liar. He is trying to pressure me into applying for a William D Ford consolidation loan....he is saying that it will bring my status out of default and I can set the amount to be paid. At best I can only do $15.00/Mo. He said that all I have to do is pay on it and keep it in good standing for a certain amount of time and it will be Charged OFF. Even that will be difficult to do because here in South Carolina Medicaid only pays for four prescriptions a month. I need 12 so I go without most of my meds. or I get certain ones filled one month and others the next. Sometimes I pay for them out of my pocket...OUCH

My student loans originated in Maine and Masschusetts and were consolidated in Massachusetts in 1993. I have been disabled since then. But can not get my current doctor to say I am Totally and Permanently Disabled....Even Stephen Hawking might not qualify for that definition.

Whats interesting is the means test for Undue Hardship only uses the perameters used by Social Security to determine disabilty.....a lot more fair and realistic.

I got my doctor in Massachusetts to sign the form for Total and permanent disability and I sent the form to the collection agency by return reciept requested. This was 1995. I did not hear from any one again until about 1998. I figured that they had accepted my doctors statement. The new collections people knew nothing about it.

I appreciate any insight that I can get from anyone.

Kat

[Gettingwrinkles]

Means-tested government benefits are normally exempt from garnishment. In specific relation to SSI, there is also an exemption under federal law, 42 USC § 407(a).