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  1. #1
    Join Date
    Jun 2011
    Posts
    1

    Default Student Loans and Retirement Income

    My question involves collection proceedings in the State of: Michigan (loan originated in Illinois)

    My mother lives on social security and pension income. We owe thousands of dollars in private student loans to a private university (lender). The university's financial services tricked my mother into signing an agreement where the school withdraws payments electronically from her bank account monthly. She wants to change her agreement so that she can mail-in her payments. The university refuses to accommodate this change. Can the university legally withdraw money that is 100% social security and pension income? Does my mother have the right to exempt her income from debt collectors?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Student Loans and Retirement Income

    The authorization is between your mother and her bank, not your mother and your university. That's true even though the document she signed setting up the arrangement was likely between herself and the university. If she wants to terminate an automatic payment from her account, she should work through her bank.

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