From WFLA:
Mamie Walker is 84-years-old, has never attended college and depends on her monthly social security check of $1,498 to survive.
But for the past two months, the government has sent Mamie nothing, except a letter claiming she owes them $224,414.50.
A letter from the Treasury Department
claims she has been referred to them for "collection action."
The letter explains up to 15 percent of each of her checks will be withheld to pay the debt. That was shocking enough, but no check came at all in February or March. She received another letter stating she won't receive another check until Sept. 2031.
"I'll probably be dead by then," Walker said. "I'm so scared. I don't sleep at night because I'm so scared next week ... my lights are going to be off."
Mamie says she not only never went to college, but she never learned to read or write because she had to go to work as a child to help support her family as a "field hand." ...
I can guess that she guaranteeded a student loan for a relative. If not, this is one hell of a mistake. If it is a student loan for a relative, this points out the horrors of the current system. It’s possible for her to get out from under this crushing burden by declaring bankruptcy but it’s not easy.
Student loan for a relative ? Could also be for an illegal that used her SS number. Or anyone else. Does SSA gave a human look at these cases BEFORE cutting off benefits? It SHOULD be required!
ReplyDeleteHer monthly amount seems somewhat above average particularly for someone who is illiterate. I suspect that someone else paid into the system using her SSN
ReplyDeleteWhat ever happened to due process of law? Notice and opportunity to be heard before the government does things like this.
ReplyDelete12:36 The news outlet only knows what the recipient told them. In this case, the recipient was either ignorant of SSA notice letters and failed to timely request reconsideration or an ALJ hearing, or the recipient is only giving the reporter a fraction of the story.
ReplyDelete@12:15pm - What do you want SSA to do? It is the US Department of Education that determined she owes that amount, not SSA.
ReplyDeleteHowever....
1.) The Treasury Offset Program is not a full withholding deduction only partial. The article even states it is "15 percent." So the student loan is not a SSA issue and those letters even tell the beneficiary not to call SSA about it.
2.) The recovery letter saying payment will be withheld until 2031, however, IS about a SSA overpayment. These two things are not the same. Under the Social Security Act section 207, Social Security may not assign benefits to a third party. They make exceptions for federal debts, taxes and garnishments for child support and victim restitution but NONE of those appear as overpayments on the record. That is, if you call someone at SSA, they should only see the student loan mentioned in notices and not on the record. This means...
3.) Someone actually manually posted the $224k+ amount to the claim. For it to be computer generated given the current time frame, she would have had to receive on average $4,579 per month. That is possible, but only under pre-1977 amendments and usually only for those who earned the maximum amount covered at the time for close to 35 years with delayed retirement credits.
4.) Given her current benefit of close to $1500 (really $1633.50 before Medicare premium deduction), she would have been overpaid for 137 months or just a little under 11.5 years. That means she would have be 72-73 depending on her birthday. Of course, if it is over 4 years...
5.) The rules of administrative finality were not observed unless fraud could be established (or clerical error due to a typing mistake).
Immediate conclusion? The student loan and the overpayment are entirely separate and not related here.
The likely culprit? Someone new benefit authorizer in Southeastern Program Service Center (basing this on her state of residency and that her son leaves nearby) still cannot work an Annual Earnings Roundup Operation case correctly and removed part of the benefit she gets as a widow when processing a minuscule increase on her own record, which should have resulted in an even push with nothing due or a change of only $1.
What should happen? Her son probably needs to be her payee, but even if not necessary, she needs to file a request for reconsideration on the overpayment -cannot due anything about the student loan collection - and include a good cause statement for late filing that she is illiterate. At that point, she could at least start getting her monthly payment less the 15 percent for the student loan debt.
I would like t take this poorly written story, with limited information and get angry at someone and then post a bunch of gibberish without knowing at least 50% of the facts and mostly likely a much higher percentage.
ReplyDeleteValue of this type of story in media and here is very low.
Why is everyone trying to guess what her benefit level should be? I, at 35 years old starting collecting over $1500/ month. There seems to be a myth that anyone who relies on a SS check must have never made good qualifying money and that is just not true. I have been out of almost 20 years and without my check I would be homeless and yet I made above average income..that does not make me infallible to ailments and illnesses, does it? Everyone has a different benefit level.
ReplyDeleteAdditionally, guaranteed student loans are the only ones offered by and guaranteed by the US Government and so there is NO NEED TO COSIGN- IT IS GUARANTEED regardless of credit score or assets. If it was a private loan then SS would NOT be involved in this case. No one can garnish a SS check except for he US Government. PERIOD.
SSA benefits can be garnished for child or spouse support.
ReplyDelete