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News Link • Social Security

Defaulted Loans May Haunt Seniors

03/08/2010 • by Ellen E. Schultz, Wall Street Journal, Yahoo

A little–noticed law could soon result in smaller Social Security checks for hundreds of thousands of the elderly and disabled who owe the U.S. money from defaulted loans and other debts more than a decade old. Social Security benefits are off–limits to creditors, such as credit–card companies and banks. But the U.S. can collect debts to federal agencies by "offsetting," or withholding Social Security and disability payments.

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