Posted by: Heinz Brisske

ABC News Reports that about twice as many Social Security recipients as last year are not receiving their entire Social Security payments due to a law passed in 1996 which allows the federal government to withhold portions of checks if defaulted debt is owed to the government, including federal student loans. Whether the loans were taken for their individual use or their children’s education, the government has reduced around 115,000 retirees’ Social Security checks. Typically, Social Security payments are protected from creditors. While the federal government can withhold funds, they must leave $750 a month untouched, which is less than the poverty line.

The National Consumer Law Center in Boston has set up a website to assist borrowers to avoid default and to outline steps to take if they do default on a loan.