Wednesday, December 07, 2005

Still owe student loans?

The federal government can seize a person’s Social Security benefits to pay old student loans, the Supreme Court ruled unanimously Wednesday.

The benefits of a disabled man, James Lockhart, had been cut by 15% to cover debts he incurred for college in the 1980s. He argued that needs all of his $874 monthly check to pay for food and medication.

The Bush administration had maintained that the case was important because outstanding student loans total about $33 billion, which includes about $7 billion in delinquent debt, government lawyers have said.

Read the CNN story here.

Read the court’s decision (by retiring Justice Sandra Day O’Connor) here.

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