Can my pension be taken for federal student loan debt?

Education Forums
1

Hey, does anyone know if federal student loan debt can lead to your pension being garnished? I’m not sure how it works, and I haven’t gotten any official notice about it yet, but I thought I’d ask to see if anyone here has dealt with it before. Would appreciate any info!

2

Yes, pensions can be garnished for federal student loan debt, but it’s usually capped at 15% of your disposable income, including pensions.

3

Lennon said:
Yes, pensions can be garnished for federal student loan debt, but it’s usually capped at 15% of your disposable income, including pensions.

Wow, I didn’t know that applied to pensions too. Thought it was just wages. That’s a bit concerning!

4

@Dale
Yeah, it’s part of the Treasury Offset Program (TOP). They can also go after Social Security, but not SSI benefits.

5

I’ve been looking into this myself. The lawyer I spoke to said that federal loans can affect pensions and Social Security, but only a small percentage.

6

Blaine said:
I’ve been looking into this myself. The lawyer I spoke to said that federal loans can affect pensions and Social Security, but only a small percentage.

That’s good to know! I’m hoping I don’t run into this issue, but I’ll be more aware now.

7

If you’re worried about it happening, you might want to speak to a lawyer. They could possibly help you avoid garnishment before it gets too far.

8

Davis said:
If you’re worried about it happening, you might want to speak to a lawyer. They could possibly help you avoid garnishment before it gets too far.

That’s a good point. I wasn’t sure if a lawyer could do anything, but now it seems worth checking out.

9

It’s good that you haven’t received any notice yet. But definitely keep track of everything. If it ever comes up, you’ll want to be prepared.

10

Gale said:
It’s good that you haven’t received any notice yet. But definitely keep track of everything. If it ever comes up, you’ll want to be prepared.

Yeah, I’m staying on top of it. Hopefully, I won’t need to worry about garnishment at all.

11

Just so you know, garnishment for federal loans usually comes after you’re in default. If you’re keeping up with payments, you might be safe.

12

Ren said:
Just so you know, garnishment for federal loans usually comes after you’re in default. If you’re keeping up with payments, you might be safe.

I’m still making payments, so hopefully that won’t happen. Thanks for the info!