Loan Discharge -

[gabbosgold]

What is the name of your state? SC

This question is in regard to a government loan. As a disabled person I have applied for a disability discharge but they are not granting my request because of insuffiecient medical records. I even called social security and asked if they could help me verify my disability, which they said they can't. How can I appeal this decision ? I've been hoping that this would be written off since I cannot repay the loan. Advice is needed ASAP ! Thanks !What is the name of your state?

 

[BL]

What is the name of your state? SC

This question is in regard to a government loan. As a disabled person I have applied for a disability discharge but they are not granting my request because of insuffiecient medical records. I even called social security and asked if they could help me verify my disability, which they said they can't. How can I appeal this decision ? I've been hoping that this would be written off since I cannot repay the loan. Advice is needed ASAP ! Thanks !What is the name of your state?

Can Social Security benefits be garnished to pay a debt? Answer
Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:
Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;
Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be garnished to collect unpaid Federal taxes;
Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;
The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and
The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.
The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act only as long as they are identifiable as Social Security benefits. This applies to money in a bank account where the only payments into the account are from direct deposit of Social Security benefits.
NOTE: Supplemental Security Income payments cannot be levied or garnished.

I believe they can only garnish your wages to a certain extent .

Provide medical proof through your DR(S) , or review and get copies of your disability .

 

[gabbosgold]

Thanks for that valuable advice ! To better understand what the fed's are saying, let me repeat what their latest letter says -

Your loan discharge request for total and permanent disability submitted to U.S. Department of Education, Federal Student Aid, has been transferred to the U.S. Department of Education (ED's) Disability Discharge Loan Servicing Center based on a preliminary determination that you were totally and permanently disabled.

ED is the new holder of your loan. The change of ownership of your loan will be reported to national credit bureaus.

Further review of your discharge application and supporting documentation indicates that you do not meet ED's definition of total and permanent disability for the following reasons
- - - - - Medical Review Failure -----.

ED will return your loan to an active status. You must resume payment on the loan. You will soon be informed of where and how to make payments. End.

My question is how can I appeal this motion ? Need I look for a lawyer or can I represent myself ? This loan was also taken out in 1986, 21 years ago and no payments have been made since day one. Also, how will this effect my credit score ?

 

[jfkimberly]

I have just received the same letter

ED is the new holder of your loan(s). The change in ownership of your loan(s) will be reported to national credit bureaus.

Further review of your discharge application and supporting documentation indicates that you do not meet ED's definition of total and permanent disability for the following reason(s):

Medical Review Failure​

ED will return your loan(s) to an active status. You must resume payment on the loan(s).

Now I have more questions than before:
1. I'm not sure what stage I was at in the process (prior to receiving this letter, was I in conditional discharge status, and this is my final determination?)

2. Is this determination subject to appeal? Is it a formal appeals process, or can I just have my doctor send more information?

3. I've seen mention on other forums/blogs of a lengthy medical information form (several pages long)... I don't think my doctor submitted anything like that, because I only gave her the discharge application. How can I find out what supporting documentation was included in my application?

4. How does the reported change in ownership of the loan affect my credit worthiness?

5. If my discharge request is ultimately denied, can my Social Security payments (my only source of income) be garnished, and to what extent?

 

[gabbosgold]

What has helped me the most with concerns of my 20 year old loan was the Debt Collection Improvement Act made in 1996. Look it up and read the details. It gave me a better idea of what collection agencies will do to collect an outstanding loan. Hope it help you too

 

[pcgumshoe]

First, I'm disabled. Second, I had student loans, and Third, I had them discharged.

Question: When were you determined disabled? Was it recently? What is the nature of your disability?

My disability goes back to 1994. I made my application to discharge in 2005.

With regards to your medical records (I can't remember sending any), if you need a copy of the records that determined you disabled according to Social Security, you can request to review and copy your file with your local Social Security Office.

Disability Determination Notice: Where is this? If you have this, you can also provide it as proof.

Concerning your credit: I believe that defaulted student loans can be reported for a very long time (longer than 7 years).

Your credit could still be affected by the discharge for 7 years. After the loan is discharged you can try and get it removed, but no guarantees. The ADVANTAGE to having it discharged is your DEBT is reduced. So if you have loans for $30,000 plus a car and mortgage, your total debt will be reduced by that $30,000.

I'm not a lawyer, but I went through this and it is my experience.

 

[roselee_a]

From Loan Suggest (loansuggest.com) If you purchase a new or used vehicle or move to South Carolina from another state, you must apply for a new vehicle title and registration. You may apply for the title and registration by mail. The Form 400, Application for Certificate of Title/Registration, which must be completed, contains the proper mailing address for the department.

 

[Betty]

From Loan Suggest (loansuggest.com) If you purchase a new or used vehicle or move to South Carolina from another state, you must apply for a new vehicle title and registration. You may apply for the title and registration by mail. The Form 400, Application for Certificate of Title/Registration, which must be completed, contains the proper mailing address for the department.

What does this info have to do with original poster's post/question?