Court Rules Social Security Can Be Seized To Pay Student Loans

Bush Administration Says Outstanding Student Loans Total $33 Billion

Not paying up on school debts can cost you when you're older or disabled.

The Supreme Court ruled Wednesday that the government can seize Social Security benefits to pay old student loans.

Justices unanimously ruled against a disabled man who said he needs all of his $874 monthly check to pay for food and medication.

James Lockhart's benefits had been cut by 15 percent to cover debts he racked up for college in the 1980s.

The ruling upheld a lower court decision in California.

The 9th U.S. Circuit Court of Appeals had said that Congress eliminated a 10-year time limit on the government's right to seize payments to settle defaulted student loans.

The Bush administration said there are about $33 billion in outstanding student loans, of which about $7 billion are delinquent.

Read Opinion: Lockhart v. U.S.
Copyright 2005 by The Associated Press.

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