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dylatess
dylatess, ATTORNEY
Category: Social Security
Satisfied Customers: 3430
Experience:  37 plus years of SSD practice
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Does SSA have a loan program ?

Customer Question

Does SSA have a loan program for recipients?
Submitted: 8 months ago.
Category: Social Security
Expert:  emc011075 replied 8 months ago.

Hi. My name is ***** ***** I will be happy to help you.

No, SSA do not offer any loans like your 401K. Social security is government benefit, not personal retirement account.

Customer: replied 8 months ago.
Eva--I had read on a financial site promotion that SSA did have a loan program. To receive the persons news letter required a $149 subscription and the news letter would explain the loan program. I was suspect of the claim. I was interested because I thought that such a loan would help me pay off a credit card.
***** *****
Expert:  emc011075 replied 8 months ago.

It it was true the information would be available on SSA website and you wouldn't have to pay any fee or membership to get the information. It is a red flag. Social security benefits are paid from a government trust funds and there are no advances or loans.

Expert:  emc011075 replied 8 months ago.

I wouldn't be surprised that what you read what an advertisement for a private investment company who will extend you a loan with a condition that you will have to apply for your benefits as soon as 62 (permanently reducing your benefits) and start repaying the loan immediately or they will go after your house or car or other assets. A "Reverse mortgage" type of rip-off. So called investment companies often target people at retirement age or close to retirement age with financial concerns.

It may sounds like government program, but it is not.

Expert:  emc011075 replied 8 months ago.

Is this maybe what you have seen? http://crr.bc.edu/wp-content/uploads/2009/03/IB_9-6_508.pdf

The strategy will not work after April 2016 changes to SS benefits.