Wednesday, December 07, 2005

Court: Disabled Can't Escape Student Loans

The AP is reporting:
America's seniors and disabled cannot escape old student loan debts, 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.
As you see Social Security is a welfare program that the government can decide on who gets how much in benefits.Very consistent with Fleming vs.Nestor 1960 where the court said Social Security was just another welfare program.