Social Security Payments Can Offset Student Loans

The government can offset a portion of a debtor's Social Security benefits against student loans that have been outstanding for over 10 years, the U.S. Supreme Court has ruled.
The plaintiff took out federally guaranteed loans in the 1980s, but couldn't repay them because of health problems and economic difficulties. His only income was Social Security disability benefits, which the government used to offset his loan payments.
The plaintiff filed for bankruptcy, and argued that the collection of his student loans was time-barred by the 1982 Debt Collection Act's ten-year statute of limitations.
The 9th Circuit disagreed, allowing the offset.

It said that while the Debt Collection Act created a ten-year statute of limitations, the 1991 Higher Education Assistance Act eradicated that time limit, and a 1996 amendment to the Debt Collection Act specifically allowed for the offset of Social Security benefits.

In a unanimous decision, the U.S. Supreme Court agreed.