Court: Disabled Can't Escape Student Loans

[gakline]

By GINA HOLLAND

WASHINGTON -- America's seniors and disabled cannot escape debts from old student loans, the Supreme Court ruled Wednesday, freeing the government to pursue Social Security benefits as part of an effort to collect billions in delinquent loans.

The Bush administration had argued that the ability to withhold Social Security benefits is an important tool in the pursuit of $5.7 billion in student loan debt that is over 10 years old. Overall, outstanding loans total about $33 billion.

Government lawyers said there is a limit on how much can be taken from benefit checks, 15 percent, and that the Education Department can forgive debts in some hardship cases.

The unanimous decision went against a disabled 67-year-old Seattle man who lives in public housing and had sued claiming he needed all of his $874 monthly check to pay for food and medicine.

Continued...

[gakline]

I think this is really good, by the way.

[Bruce Wayne]

I agree. A contract can't be voided purely because one party has fallen on hard times.

[sweeps]

Originally Posted by Bruce Wayne

A contract can't be voided purely because one party has fallen on hard times.

I think bankruptcy lawyers would disagree.

[Snoopy2645]

I agree I think if you want to go to school you should expect to pay for it.

[PRICEPLUS]

The man in question has 77,000 in debt that he owes, according to the papers. I think circunstances should be looked at before this garnishment takes place.

Eg. someone finishes school and then develops a debilitating nerve disorder that makes them progressively sicker. Do we as a society want to take money back from people who have not purposely ducked responsibility?

If people are just ducking loans then they should be made to pay. I do think circumstances should be looked at first. Just my .02 cents.

[jmjj215]

Do we as a society want to take money back from people who have not purposely ducked responsibility?

That's the sticky area Priceplus - and I guess, based on the excerpt of the article:

and that the Education Department can forgive debts in some hardship cases.

That the Ed Dept. does do that. But man, who'd want to be the judge of these cases? Ick.

[PRICEPLUS]

I am glad they have a hardship exemption. In life some people get so many bad breaks you have to cut them slack. I would not want ot be the fellow who decides these cases either!

[weiwentg]

Originally Posted by gakline

The unanimous decision went against a disabled 67-year-old Seattle man who lives in public housing and had sued claiming he needed all of his $874 monthly check to pay for food and medicine.

Continued...

if he has a mental illness, then it would be very easy for him to need to spend his whole SSI check on medicine and food. I've heard some acquaintances say that sometimes it's a choice between eating and taking meds. that's a choice no one should be forced to make.

[jmjj215]

True.

My wife worked with the Adult mentally ill for a while and she saw both extremes: People who really needed help, and people would could function if they wanted to, but enjoyed a lifestyle of having the govt. pay for everything. I feel bad for both types of people. The latter, because they don't know what they're missing. The former because of their unfortunate situation.