SSD vs Student loans

[meerkatslvr]

I'm awaiting for my case to be reviewed. I was turned down the first time I applied and here in Alabama,instead of applying for a reconsideration, you are granted a hearing if you chose to continue. I hired an attorney and was told that I had to wait 12-18 months for a hearing date. This past October was my 12th month anniversary and when I called the atty.'s office to inquire on my case I was told it was up for review soon.

On November 7th I received a letter indicating that my case would be reviewed to determine if they can make a fully favorable decision without a hearing and I needed to submit recent medical records. I'm pretty excited and hope for a positive outcome. Now, my question is: If get an approval, will they take the student loan amount I owe from my backpay? What about IRS debt? I also owe the IRS, but it's a WHOOOOOOOLE lot less (under $900) than my student loan. I read that if you owe student loans or IRS money it could be deducted from your backpay. Does anyone knows? :)

[DiMarie]

I am not sure of your question but will see if this answers it.

I went back to college at age 50. I took out student loans and also received assitance from office of vocational rehabilatation. This money did not get paid back or offset. I still have to pay my student loans off as my disability was there when I applied and attended school.

The OVR amount was a grant much as my PEll and Phea grants were and not paid or offset.

However, if you became disabled after the studenbt laons you can request a medical review for a forgiveness. If you are deemed under their guidelines, for consideration you may receive this forgiveness.

Also, for working and SSDI, I can receive an offset for mediccal each month from my gross earnings, but not the amount in student loans. Although I never would have been eligable for this sedentary job unless I retrained. I was a police officer and now do pt time social work.

Now, for the IRS, if you own on your student loan, they will intercept and take any earned income refund. I had this happen decades ago, for the same $900, IRS took it with no notice!
I am not sure about the social security.....SOme may recall if this can be touched. It seems that this may be the only exception to being taken if owed....My daughter owed bank fees and they could not take it from her soc sec. She did pay it down slowly though. She used a credit union to recieve her checks. They would not allow creditors to touch herr ssdi amount.

Hope that you find the answers. You can also call the IRS, Banks and soc sec anonymously for information too.

[meerkatslvr]

Thanks DiMarie. I asked my attorney's office and the lady told me that she didn't think they will, but that the IRS debt is paid off the backpay. I was thinking that since I consolidated the loans it was no longer a federal debt since I now owe Wachovia Bank instead. I'll see. I hope they don't or I will have no backpay left at all :( Thanks again for your response.

[Georg]

I also had an existing student loan, funded from Sallie Mae. While awaiting my SSDI, a fully favorable decision after 5 1/2 years of waiting, I used various ways to reconsider my loan. I forget the name but they held my loan aside and did not require re-payment at that time. Finally, all those deferments ran out and Sallie Mae wanted it's money. At about the same time I was awarded my positive decision.

With my positive decision my physician applied for a totally disabled deferment which I am still awaiting to be started. Once it is approved I will owe about $200.00 based on the months I had no deferment.

If you have a Sallie Mae loan you can access the totally disabled deferment, if not most likely your loan has a totally disabled category, by federal law they must offer you this deferment.

Hope this helps?!

[meerkatslvr]

I really appreciated your input Georg. I will definitely check further into it tomorrow. It worries me because GOD KNOWS I need that money and the prospect of having it taken all away scares me. Thanks again. I'll let you guys know what comes of it.:)