Roberts' Supreme Court Rules Elderly, Disabled Can Have SSI, SS checks garnished

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S

Wed, 7 Dec 2005 14:48:02 -0800 (PST)

Roberts' Supreme Court Rules Elderly, Disabled Can Have SSI,

SS checks garnished by feds for student loans

 

 

 

Court: Disabled Can't Escape Student Loans

Dec 7, 04:56 PM EST

 

By GINA HOLLAND - Associated Press Writer

WASHINGTON (AP) -- 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.

 

James Lockhart's benefits had been cut by 15 percent to cover debts he

incurred for college in the 1980s. He has about $77,000 in unpaid loans.

 

The court's decision applies to loans that date back more than 10

years, and covers both disability and retirement benefits under the

Social Security program.

 

Senior citizens groups did not know how many elderly or disabled

people could lose some of their monthly checks if the government

decides to go after them.

 

" It means that you can take the Social Security benefits of someone

who is 90 years old and living on a small amount of money, " said Brian

Wolfman, director of the Public Citizen Litigation Group and the

lawyer for Lockhart. " The losers are clearly older Social Security

beneficiaries. "

 

Lockhart lost earlier at the San Francisco-based 9th U.S. Circuit

Court of Appeals, which said that Congress, in laws passed in 1991 and

1996, eliminated a 10-year time limit on the government's right to

seek repayment on defaulted student loans by seizing Social Security.

The justices affirmed that decision.

 

Other lower courts, however, have ruled in favor of Social Security

recipients, and Wolfman said that Congress could reconsider the issue.

 

The Supreme Court was called on to clarify federal laws that sent

conflicting messages about the collection of old loans. The government

first began withholding the money from Social Security benefits in

2001 and has defended its authority to do so in court.

 

The ruling, written by Justice Sandra Day O'Connor, will probably be

one of her last. She is retiring after 24 years.

 

In a concurring opinion, Justice Antonin Scalia said that Congress

" unambiguously authorized, without exception, the collection of

10-year-old student loan debt. ... In doing so, it flatly contracted

and thereby effectively repealed part of the Social Security Act. "

 

Groups such as the AARP and the National Consumer Law Center had urged

the court to safeguard Social Security benefits in the Lockhart case.

The benefits, the organizations said, " are critical in preserving a

measure of financial independence for older and disabled workers. "

 

Also Wednesday, new Chief Justice John Roberts announced his first

ruling, in a case involving legal fees. The 9-0 decision backed

insurance companies, which argued that they should not have to pay

legal fees of a New Mexico couple in a case that was shuffled from

state court to federal court, then back to state court.

 

The student loan case is Lockhart v. U.S., 04-881, and the lawyer fees

case is Martin v. Franklin Capital Corp., 04-1140.

---

On the Net:

Supreme Court opinion in Lockhart v. U.S.:

http://wid.ap.org/documents/scotus/051207l...

 

 

" With public sentiment nothing can fail. Without it, nothing can

succeed. Consequently he who molds public sentiment goes deeper than

he who enacts statutes or pronounces decisions. "

— Abraham Lincoln

[Guest guest]

In 1999, student loans could be discharged in bankruptcy court under the

undue hardship doctrine - most courts considered being unable to work due to

disability an undue hardship. More recent research indicates that this is

still true. Disabled debtors in this situation should consider bankruptcy.

 

Love,

Anna

 

 

 

[Guest guest]

Unfortunately Anna, Our President(?) in his infinite wisdom has made it almost

impossible for the little man to declare Bankruptcy since Oct.17

Hypnotically Yours

Flash Gordon

 

 

 

 

 

 

 

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Anna Blaine

Thursday, December 08, 2005 8:18 AM

Re: Roberts' Supreme Court Rules

Elderly, Disabled Can Have SSI, SS checks garnished

 

 

In 1999, student loans could be discharged in bankruptcy court under the

undue hardship doctrine - most courts considered being unable to work due to

disability an undue hardship. More recent research indicates that this is

still true. Disabled debtors in this situation should consider bankruptcy.

 

Love,

Anna