ABC NEWS: More Social Security Money Withheld Because of Unpaid Student Loans

According to a 1996 law, the federal government has the authority to withhold portions of Social Security payments if defaulted debt is owed to the government, including federal student loans.

Ever think that maybe they've defaulted because there are no jobs, thus no money to honor those debts.

From January through August 6 of this year, the government reduced the size of about 115,000 retirees' Social Security checks, almost double the department's enforcement in 2011, according to data from the Treasury Department. In 2007, there were 60,000 cases and in 2000, there were only six cases.

Wow! That's what I call heavy handed mafia techniques. We're going to do what we want, and you can't do a thing about it. A big Snip you to the lower classes. Don't compensate by taxing the ultra rich. Compensate by smashing the little guys who can't defend themselves. Policies that continue to stomp and suck the financial life out of the middle and lower classes.SPIP these politicians, and Snip anyone who supports them. I hope they all drown in aids. ABC NEWS





I have no issue with MODS editing my post if deemed necessary, but please don't erase parts of it and butcher the readability. V/R Gravedigger

I know, it is ridiculous.

My state is sticking it to taxpayers again. Now mind you that employees have been furloughed for five years now with no cola either,and benefits have been cut every year.

But the casinos that were just legalized and are moving in, are getting tax breaks. And are now complaining that they are not getting enough of a tax break, and they are not equal.

And the state is catering to them(liberal state but acts ultra conservative towards business).

So the tax breaks are to encourage business, so there are roughly 8,000 new casino jobs.

Yet, 80,000 workers are continually stepped on to balance the budget.

The US can give billions to banks with no strings attached but can't pay for student loans? This country is so backwards.

The sad thing is so many people on here would be fine with corporate/banker welfare and dead against universal college tuition. People hate to see the little person get ahead.

Thanks for the responses. These are the types of things that the people should rally against. These are the types of things that should make the middle and lower classes angry. I know it makes me angry. I despise seeing the average person stepped on without any ability to control it and no support from fellow citizens.Why is it considered acceptable that big financial interests can get government tax breaks and assistance, but the little guy has some kind of character flaw because they want a fair cut or expect a better standard of living?I understand the rich rallying for their own interests, but I could never understand why the small guy applauds and backs people who blatantly step on their own interests.

yet people still trust the goverment to hold on to there Social Security in a lock box. I wish i could opt out of SS. Im paying into a system that im never going to see a dime out of. how fair is that.

Originally posted by RealSpoke

The sad thing is so many people on here would be fine with corporate/banker welfare and dead against universal college tuition. People hate to see the little person get ahead.

Like university administrators who charge students the price of a Lexus to attend one year of study?

You know that cost of tuition is factored into how "good" a school is?

That means to be ranked as a "good" school you have to charge a premium over your competitor whether it is deserved or not. Ex: Harvard wont charge less than Yale and vice versa for fear of being ranked lower on the totem than the other.

It's not just Ivy schools. It's all schools.

There is simply no reason for it to cost so much to go to school. Even community college, state schools and trade schools are priced out of most poeples reach without taking on tons of debt.

Focusing on banks not loaning money just enables the problem to continue.

I had a woman in here yesterday whos son wanted to go to community college for auto mechanics. Between the mandatory $2,000 tool set and the $16,000 tuition they were screwed. They make less than $800/month so they cant get a loan and yet they arent poor enough for assistance to a school that their taxes help fund because apparently it costs $16,000 to get a #ty piece of paper that tells the world you know how to do the thing you've been doing without that #ty piece of paper for the last ten years.

With the influx of millions more on tax paid benefits, entitlement programs, the money has to come from somewhere.

Whom better to take it from, than the people who've already paid into the system, and now are in the position of benefiting from all those years they've paid in. That is the easiest piggy bank to raid.

I've never made use of the student loan program, but know of some who did, many years ago. It was easier for them to pay them off, because our economy wasn't stalled through federal boondoggles like it is now. The current student loan program has been taken over by entitlement programs. To many, it's just another lemon to be squeezed, until it's dry. With no intention of ever paying it back. If you are in subsidized housing, on welfare, you pretty much automatically qualify. If you know how to play the game. Hell, Our government even has agencies that do all the paper work for you when applying.

The whole system needs a complete overhaul. A forgive/default mandate, wipe the slate clean for those over a certain age, and reboot with strict guidelines in place for new applications.

This attitude of kicking the can down the road has caught up with out of control spending. We've simply run out of road.

So, now we have financial cannibalism coming full circle on the retirement programs, and those who can least afford it.

Des

I tell you what, just go ahead and take the social security I'm suppose to get in 35 years and we can call it even. Seems like a fair deal to me.

For money to work there need to be people without money. The more people are poor the more the money you own is worth. A shoesining wont be a dollar if the average salary is 20.000 Dollar a month.

Im not seeing the issue here? They didn't pay their loan back, I'd keep their money too.

Bring on the work camps to pay off your GSL debts. This is what those FEMA camps are really for. Debtors prison.

Our countries University structure is mess mostly due to these govt. backed loans. The loans are really just free money for the universities who continue to spend with no end in sight as they raise tuition at astronomical rates from year to year. Subsidized universities built on the backs of the taxpayers and the students who signed up for the loans. Its quite the cycle...

Should have seen this all coming when Obama federalized the student loan program. Most people do not even realize that it happened.

With over 1 trillion of student loan debt and since the Government cut out Banks that use to make loans you get what you get.

reply to post by neo96


Nothing like the sting of reality!!

Originally posted by jibeho

Should have seen this all coming when Obama federalized the student loan program. Most people do not even realize that it happened.

Your mean REFORMS that don't go into effect for another 2 years??

Your disregard for the truth is astounding.

www.whitehouse.gov...

Will people never understand it: A GOVERNMENT ABLE TO GIVE YOU EVERYTHING YOU WANT IS BIG ENOUGH TO TAKE IT AWAY.

Lots of people don't go to expensive universities because they choose not to get saddled down by extreme student debt. They do the best they can with less expensive alternatives.

Why should someone who chooses to go to Ivy league universities or other expensive private U's and load themselves down with humongous debt, get a free pass when suddenly they find out they actually are expected to pay it back?

Originally posted by Indigo5

Originally posted by jibeho

Should have seen this all coming when Obama federalized the student loan program. Most people do not even realize that it happened.

Your mean REFORMS that don't go into effect for another 2 years??

Your disregard for the truth is astounding.

www.whitehouse.gov...

You're wrong again. It has already started to kick in. Don't trust that outdated WH Crap.

Remember this ??

On Sunday, July 1, several changes to federal student loan programs took effect. If you’re a current or soon-to-be college or graduate student, read on to see if you’ll be affected.

The interest rate on subsidized Stafford loans taken out as of July 1, 2012, will remain at 3.4 percent for one more year. This was a last-minute Congressional decision reached after the interest rate, which was set by law to double to 6.8 percent this year, became a political talking point.

www.usnews.com...

Is my "disregard for the truth" still "ASTOUNDING" or is yours???

Love your constant personal finger pointing. Especially when you are clueless about simple facts..


ETA
Obama reformed NOTHING. He Federalized the entire Student Loan Process. Just ask anyone who used to work for Sallie Mae.

Originally posted by RealSpoke
The US can give billions to banks with no strings attached but can't pay for student loans? This country is so backwards.

The sad thing is so many people on here would be fine with corporate/banker welfare and dead against universal college tuition. People hate to see the little person get ahead.

edit on 17-8-2012 by RealSpoke because: (no reason given)

I'm pretty sure your man is the one in power, so I'm surprised you aren't defending this somehow.

It seems to me that they want us screwed.

Thoughts to ponder:
Paul Ryan's medicare plan will impact those not already eligible to collect in 2032.
That will be four years before I am eligible to collect. So, someone four years older than me must be protected because otherwise what would they do, but those four, or even one year too young just eat it? Perhaps I am some kind of financial genius and they simply expect me and everyone else of my age to somehow get wildly stinking rich during the last four years of our working life.

I had serious questions about whether social security would be available to me. I work in a job that has a pension plan as part of its system of compensation. I pay into that plan but it is tied to the state. The state has been making a lot of noise lately about how it's too expensive (I paid my part but they skipped theirs) and indicating their willingness to get rid of it.

So, I wasn't counting on the Federal handout. I made private contractual provisions to provide for myself in my old age, but they might not honor them? The bankers on Wall Street got huge bonuses right after the bailout. The public was disgusted. How, they asked, could this happen??? They were told it could happen because those executives had contracts which entitled them to those bonuses. Oh, I see, so some contracts are beyond question, but mine isn't. Great. Nothing to see here move along.

Right now, I consider myself lucky to have a job.
Employers all across the country are taking advantage of the high unemployment by doubling up jobs without anything that even approaches a doubled salary. Some people (too many people) absorbed one or more additional positions and had to take pay cuts as well. How exactly are people supposed to get ahead? How are they supposed to see their family when they are busting their butts 70 hours a week or more, afraid to call in sick, afraid to take vacation. I don't believe in handouts but things in this country are swinging way too far in the other direction.