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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102350
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I had a NY state gher education loan from a local bank for

Customer Question

I had a NY state higher education loan from a local bank for $1500. which was delinquent and never paid. The loan was initiated about 1971. When I left college I fell on hard times and moved around a lot. Now that I am collecting Social Security The Department of the treasury wants to garnish my Social Sec. payments up to 15% to pay off a $8573. balance ( I guess with accrued interest) What legal rights do I have to settle for less. And is there a statute of limitations for this?
Submitted: 1 year ago.
Category: Legal
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information only for educational purposes only, and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. Do you know if they actually sued and received a judgment, or not sure?

This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

Customer: replied 1 year ago.
I never received any law suit. So I assume there was no judgement
Expert:  Ely replied 1 year ago.

Thank you.

For your rights at debt cancellation, discharge, and forgiveness, see HERE.

Because this is a government backed loan, it has no statute of limitations. This means the debt may be enforced even now. However, the interest rate is calculated at the amount the contract mentions, or if it is silent on this, then 9% at most, from the beginning of the default. See CPLR 5001 et seq.

Unfortunately, Social Security money is subject to garnishment if the debt is the government.

I am afraid that there is really very little wiggle room here. Negotiations are always possible, however, if they know that they can dip into your SSA money, then they may be not willing to negotiate as much unless you pay everything up front, for example.

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