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WASHINGTON -- Not paying up on school debts can cost you when you're older or disabled.
The Supreme Court ruled Wednesday that the government can seize Social Security benefits to pay old student loans.
Justices unanimously ruled against a disabled man who said he needs all of his $874 monthly check to pay for food and medication.
James Lockhart's benefits had been cut by 15 percent to cover debts he racked up for college in the 1980s.
The ruling upheld a lower court decision in California.
The 9th U.S. Circuit Court of Appeals had said that Congress eliminated a 10-year time limit on the government's right to seize payments to settle defaulted student loans.
The Bush administration said there are about $33 billion in outstanding student loans, of which about $7 billion are delinquent.
Glad to see there is some sense in government and people with incoming cashflow can't claim to not be able to pay debts. :roll:
WASHINGTON -- Not paying up on school debts can cost you when you're older or disabled.
The Supreme Court ruled Wednesday that the government can seize Social Security benefits to pay old student loans.
Justices unanimously ruled against a disabled man who said he needs all of his $874 monthly check to pay for food and medication.
James Lockhart's benefits had been cut by 15 percent to cover debts he racked up for college in the 1980s.
The ruling upheld a lower court decision in California.
The 9th U.S. Circuit Court of Appeals had said that Congress eliminated a 10-year time limit on the government's right to seize payments to settle defaulted student loans.
The Bush administration said there are about $33 billion in outstanding student loans, of which about $7 billion are delinquent.
Glad to see there is some sense in government and people with incoming cashflow can't claim to not be able to pay debts. :roll: