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Q: Can the government garnish social security benefits if I default on a federal student loan?

Are you racking up large federal student loan debt for your own education or for your children’s college educations? If so, your Social Security benefits could be in jeopardy if you fall behind in your loan payments.

Social Security Disability Insurance (“SSDI”) is government benefits paid to people under 65 with a qualifying physical or mental “disability” that “prevents them from engaging in substantial gainful activities and that has lasted, or is expected to last, for 12 months or more or result in death”. The recipient must also satisfy the minimum required work credits and must have paid into the Social Security system through taxes on their income for a number of years prior to becoming disabled. The amount such benefits is not based on financial need but rather on a formula that considers their average lifetime income prior to their disability.

Social Security retirement income benefits are also based on a formula which factors in a worker’s average lifetime income and the age they choose to retire from working and begin collecting their retirement benefits.  If the worker becomes disabled before retirement age and qualifies for SSDI benefits, those benefits are generally automatically converted to regular Social Security retirement benefits once they reach retirement age.

Both Social Security retirement benefits and Social Security disability insurance benefits can be subject to garnishment by the government if the beneficiary defaults on the repayment of a federal student loan. That includes loans for their own educations (often taken later in life and not paid-off before retirement or disability hits), as well as loans they took on to finance their children’s college educations.

The good news is that recipients of Social Security disability benefits may be eligible for student loan forgiveness–which would stop the garnishment of their Social Security benefits. The bad news is that garnishment of Social Security benefits to repay loans not subject to loan forgiveness is not as easy to get around.

If you are already receiving Social Security benefits but are having difficulty keeping up with student loan repayment obligations, you can consider the following actions to avoid garnishment of your Social Security benefits:

• check on qualifications for a loan cancellation for disabled individuals;
• pursue an income-based repayment plan with a lower monthly payment;
• seek a forbearance which might buy you some time without payments;
• explore a loan consolidation which can result in more manageable payments.

If you take no action, you increase the chances of your Social Security benefits being garnished. Once your loan remains unpaid for nine months, the government can start taking15% off your monthly benefits check– without having to take you to court first.

In addition to the defaulted loan negatively affecting your credit rating, the amount garnished is generally applied to interest and penalties rather than principal, so the student loan debt is not getting paid down quickly, if at all. Further, those whose Social Security benefits are their primary or sole income source often cannot afford any reduction in their monthly check. Garnishment of benefits can cause severe financial hardship to many and if it continues at its current rate, it’ll result in “hundreds of thousands of American seniors living in poverty”.

Once garnishment happens, you have two options. First, request a hearing within 30 days which can hold the garnishment off temporarily and gives you a chance to show why your check should not be garnished. Another option is to negotiate a loan rehabilitation agreement with your lender under which you pay an agreed-upon marginally-increased monthly amount for a certain period of time after which the garnishment eventually ends and the loan default gets removed from your credit report.

If you need assistance in the SSDI application or appeal process for benefits or have any questions regarding Social Security benefits, the Arizona disability attorneys at Roeschke Law, LLC are dedicated exclusively to SSDI and SSI disability law and can help you. Call 800-975-1866 for a free consultation. We represent clients in all cities and counties in Arizona. 

Q: Can I count on Social Security Disability Insurance Benefits alone to support me and my family or should I get private disability insurance?

They say the only sure things are death and taxes.

Maybe that kind of thinking is why most Americans have– or at least acknowledge– the importance of life insurance. Sadly, most people don’t place the same value on disability insurance. And the reality is you’re more likely to become disabled than you are to die before reaching retirement age. Just ask an experienced Social Security Disability law attorney.

So what are you thinking?

Perhaps you are relying on taking advantage of Social Security Disability Insurance (“SSDI”) if you become physically or mentally disabled. But will you qualify for those benefits and if so, will that income be enough to sustain you and your family?

SSDI is a benefit where the government provides financial compensation if you become “disabled” before age 65 and are no longer able to work. As long as you fall within the criteria of “disabled” and have the requisite number of work credits, you may be eligible to receive SSDI. It’s a work-based system that examines how long– not how much– you paid into the system through income tax contributions while you were able to work. Unlike another government-sponsored disability benefits program known as Supplemental Security Income or (“SSI”), SSDI is not based on your financial situation.  

A qualifying “disability” for SSDI is defined as “the inability to engage in substantial gainful activity due to a medically determinable impairment that has lasted or is expected to last a minimum of 12 months or result in death”. There are many health problems that may qualify as disabling conditions and can be either physical or mental impairments.

The SSDI application process can be daunting and denials of benefits are common. Hiring an experienced SSDI attorney from the outset or at any point along the SSDI appeals process, may increase the likelihood of obtaining benefits.

SSDI payments are not connected to the severity of your disability or your current income or need, but rather are based on your average lifetime income before you became disabled, with the majority of people receiving $700-$1,700 in SSDI benefits per month. The 2017 average monthly disability benefit is $1,171 and the maximum monthly benefit this year is $2,687 for those on the higher end of the average lifetime income spectrum.

Would your SSDI entitlement be sufficient for your family to live on and can you wait the many months it may take for approval and receipt of the first check?

Some people, generally those whose employers offer it, purchase private disability insurance. Such private policies differ vastly in their cost, terms, definitions, and how claims are submitted and paid. Policies may cover either short-term disability STD or long-term disability LTD and sometimes will cover both. Some important terms to check out when considering private insurance include elimination periods, length of payout limitations, and in the case of an employer-based plan the percentage of the employee’s income contribution that is required. It is a personal decision.

It’s also important to note that while you can generally collect both SSDI benefits and private disability insurance benefits simultaneously, if there is a Social Security benefits offset clause in your private policy, the benefits paid from your private insurance plan will be reduced (off-set) if you are simultaneously collecting SSDI benefits.

If you are disabled and think you may be entitled to SSDI benefits, or need more information about disability-related matters, contact the Arizona disability attorneys of Roeschke Law, LLC at 800-975-1866 for a free consultation. We regularly represent clients from all Arizona counties and in all of Arizona’s local hearing offices, including Phoenix, north Phoenix, and Tucson.

Can I obtain social security benefits for my illness?

The media has been filled with reports of fraud in the Social Security Disability Insurance Program, but these cases are greatly overstated. In fact, qualifying for and obtaining SSDI or SSI (Supplemental Security Income) benefits can be quite complicated and certain conditions must be met.

In short you must have an illness or injury that is expected to last at least a year or more or lead to death. Moreover, the Social Security Administration has a list of specific medical impairments that automatically qualify for disability benefits.

The SSA Blue Book

The list of impairments is maintained in the SSA blue book, and there are lists for both children and adults. While these lists contain similar conditions, qualifying medical conditions include:

• Musculoskeletal problems
• Vision and hearing loss
• Respiratory illnesses
• Cardiovascular conditions
• Digestive tract problems
• Neurological disorders
• Blood disorders
• Mental disorders
• Immune system disorders

In particular some of the specific illnesses that qualify for SSDI and SSI include back and joint injuries, cystic fibrosis, multiple sclerosis, cerebral palsy, depression, anxiety, schizophrenia, HIV/AIDS, lupus, rheumatoid arthritis, and kidney disease. There are many other illnesses that qualify. In short, if a medical condition or its equivalent is included in the blue book, an individual is considered disabled and eligible for benefits.

In addition, medical conditions that are not found in the blue book may still qualify provided that certain conditions are met. First, the impairment must “medically determinable.” This means that condition has been subjected to clinical and laboratory testing and is supported by medical reports. Further, residual functional capacity (RFC) must be limited.  RFC is an analysis of activities that can be performed despite the impairment, such as lifting, carrying, climbing, bending, the use of hands, and the capacity to handle emotional distress and environmental limitations.

Medical Evidence

An application for SSDI or SSI benefits must be supported by medical evidence including a physical exam, treatment notes and reports, radiological tests, blood work, mental health records. This must be recent evidence that covers the period from the time the disability occurred to the present.

The Takeaway

Navigating the SSA system can be complicated, there are confusing forms to complete and an benefits application requires significant support documentation. If mistakes are made on the application or the information is inaccurate or incomplete, the claim will be denied. Moreover, many illnesses and injuries may not rise to the level of a qualifying medical condition. In fact, nearly two-thirds of benefit claims are denied. In order to avoid these pitfalls and improve the likelihood of being approved, it is essential to engaged the service of an experienced social security disability attorney.

What are work credits and how do they affect Social Security benefits?

As you move through your working career, you earn work credits for each year during which you earn wages and pay FICA taxes into the Social Security system. These credits are being banked so that you will be able to receive Social Security Disability Insurance (SSDI) benefits should you become unable to continue earning a living. These credits are required for you to be entitled to receive SSDI, Social Security, Retirement, and Medicare benefits. Work credits, like other aspects of Social Security Disability, can be complicated and confusing, especially to those simultaneously dealing with the trauma of becoming disabled. This is why it is critical to engage the services of an experienced, highly competent disability attorney to help you apply and receive the benefits to which you are entitled.

What is a common number of work credits to receive over one’s working years?

The maximum number of work credits an individual worker can receive is four per year. The precise number of work credits you earn during a particular year depends on your employment activity and the amount you earn. As of 2016, a worker is required to earn $1260 for each single work credit. In order to qualify for Social Security Disability benefits, you will typically need to have accumulated a total of 20 work credits; there are, however, age exceptions to this rule.

How many work credits do you have to accrue to be able to qualify for Social Security Disability benefits?

While in general, adults over the age of 31 years much have accumulated 20 work credits within the past 15 years of work, if you are younger, you may be able to qualify for benefits with fewer work credits.

Disability applicants who are under 24 years of age, for example, may be able to qualify for Social Security Disability benefits if they have earned a total of six work credits in the 3 years prior to the onset of the disability. If you apply for Social Security Disability benefits between the ages of 24 and 30, you must have worked half of the time between age 21 and the time you became disabled. As you age, the years of work necessary to qualify you for SSD increase incrementally; as your age increases from 30 to 62+, your work years gradually increase to 10 and your work credits to 40.

When Work Credits Do Not Apply

It should be remembered that work credits only apply to SSDI benefits. They do not apply if you suffer from long-term or lifetime disability in which case you do not have to have earned work credits to apply for Social Security assistance. Since Social Security Insurance is a needs-based program, instead of meeting work credit requirements, you will have meet household income and asset restrictions in order to be approved for SSI payments.

Clarifying the Difference between SSDI and SSI

The SSDI program typically bases your benefits on your work credits, or the numbers of years you have invested in your own potential inability to work; it is in no way based on your financial need. You can qualify for SSDI regardless of your household income as long as you meet the SSA’s disability criteria and have sufficient work credits.

SSI, on the other hand, is entirely need-based and does not require that the individual receiving benefits has a work record, only that he or she be long-term or permanently disabled and has insufficient income or assets to maintain sustenance.

What should I do if my disability application is rejected?

For those who have severe ongoing disabilities that render them unable to work, the Social Security Disability Insurance Program (SSDI) provides much-needed benefits; however, nearly two-thirds of disability applications are rejected. Let’s take a look at the leading reasons benefit claims are rejected.

The Social Security Administration considers a number of factors when determining benefit eligibility, including the applicant’s age, the number years worked – and paid into the social security system, and when you became disabled. You must have worked for a certain amount of time to qualify. Generally, you must have 40 credits, 20 of which were earned in the last 10 years ending with the year you become disabled. If you have not acquired the needed credits, your application will be rejected.

There is a limit on the amount of income you earn from to be eligible for benefits. If you exceed this amount you are considered to be engaging in “substantial gainful activity” and therefore ineligible for benefits. Currently, the amount is $1,130 for disabled applicants and $1,820 for blind applicants. 

In order to qualify for disability benefits, you must have an impairment that is expected to last a year or result in death, and your condition must be on the SSA’s list of impairments. If your condition is not listed, you will need to provide additional details about your condition and possibly undergo a special examination with an SSA approved physician. 

If the SSA determines that you a capable of performing a different but related job, your application will be rejected. It is necessary for you to demonstrate that the severity of your condition makes you unable to perform any kind of work-related activity. 

Applying for benefits can be a difficult process and requires a significant amount of documentation about your work history, your income, medical history, other benefit applications. In particular, you must provide details about your medical condition or injury, the doctors, hospitals or clinics that treated you as well as test results, treatments, and medicines that have been prescribed.

If your application is denied, you can appeal the decision, but this requires an extra effort to ensure that all the documentation is in order. Because of the facts that applying for benefits is a difficult process and nearly two-thirds of applications are denied, you are well advised to engage the services of an experienced disability attorney.

How much of what I’ve heard about SSDI is actually true?

Many people who have become disabled wonder if they are qualified to receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and whether it is worth applying for benefits. The best person to answer this and other related questions is a thoroughly knowledgeable disability attorney. Here is a list of fact-checking replies to some of the myths you may have heard. Of course, it is essential that you actually meet with a lawyer who specializes in the field to explore your unique situation and personal options.

Not many people actually become disabled during their working years

Actually, according to the Social Security Administration, one in every four 20-year-old workers will become disabled before they arrive at retirement age.

I’ve heard that the rate of denial of claims is so high that I shouldn’t even bother applying

Although there is a high rate of denial, approximately 33 percent of those who apply for benefits receive them the first time around. In addition, many more applicants receive relief on appeal, particularly when they have the support of a capable lawyer.

I’ve been told that if I receive SSDI I will be receiving an income similar to what I earned while working

This is a blatant falsehood unless you were grossly underpaid at your last job. As of 2015, the Social Security benefit paid an average monthly benefit of about $1100 per month or about $13,000 annually. This payment is meant to help you meet basic living needs, but for most people it will barely cover housing costs.

I understand that once I begin receiving benefits I will not be able to work anymore

In fact you can return to work while collecting SSDI benefits. Your attorney will be able to guide you through the process of testing your work capabilities during a 9 month trial period.

If my doctor affirms that I’m disabled, I will definitely qualify for benefits, right?

No. The SSDI decision is legal rather than medical, though if you are applying for benefits your treating physician will have to provide the government with detailed information about your health.

Once I’m awarded SSDI benefits, I will have them for the rest of my life

Not necessarily. Your medical condition will be periodically reviewed. Your first review will be 6 to 18 months after the date you became disabled. Depending upon whether your condition is expected to improve, future reviews may occur once every 3 to 7 years.

Now that I’m unable to work, if I apply for benefits quickly, I will receive payments promptly.

Don’t kid yourself. The Social Security Department, like other government agencies, is cumbersome and bureaucratic, so don’t expect that a check will be in the mail any time soon. Processing usually takes up to 6 months, but SSDI payments will be retroactive to the date of your disability onset.

Does my medical condition qualify for a fast track disability review?

While Social Security Disability Insurance is designed to provide benefits to those who are unable to work, the system is plagued by delays and inefficiencies. However, the Social Security Administration has procedures in place to fast track review certain cases. Let’s take a brief look at some of these programs.

Quick Disability Determinations (QDD)

This process utilizes a predictive model to screen initial applications and analyze specific elements of data. Cases selected for QDD processing are forwarded to a Disability Determination Services (DDS) within 24 hours of receipt. By sorting through vast electronic files, this process helps to quickly identify cases that have readily available medical evidence and are highly likely to receive a favorable determination.

Compassionate Allowances Program (CAL)

This program has been in place since 2008 that helps claim examiners identify over 100 diseases (a number of cancers and other medical conditions) based on the claimants allegations alone. CAL relies on sophisticated software to target illnesses that normally qualify under the SSA’s Blue Book listing of impairments. This program differs from QDD in that it only requires minimal, but sufficient, medical information that trained professionals rely on when determining this evidence confirms a medical diagnosis. In these cases, decisions can be made in a matter of weeks, rather than months or years.

Terminal Illness (TERI) cases

This program is designed to expedite applications of individuals who have untreatable impairments – those which cannot be reversed and are expected to result in death. There are specific protocols in place to label, flag and continuously monitor these cases to ensure fast processing. In addition these claims must be supported by a credible claim from the applicant, a friend, family member, personal physician or other medical source. At the same time, these cases can also be identified during DDS processing. Qualifying claims include diagnoses such as amyotrophic later sclerosis (ALS), any stage IV malignancy, small cell or throat cell lung cancer, or a statement that the claimant is receiving in-patient hospice care.

Other Fast Track SSDI Cases

The SSA also fast tracks processing of disability claims for Military Service Casualty Cases (MSCC). This process, in conjunctions with the Veterans Administration (VA) and the Department of Defense (DOD) is designed for members of the military who were seriously injured while on active duty on or after October 1, 2001. To qualify, military personnel must be unable to do substantial work due to their physical or mental medical condition(s) that must have lasted or be expected to last at least one year, or is expected to result in death.

Lastly, there is also a fast track process for Presumptive Disability (PD) and Presumptive Blindness (PB) cases that provide claimants with payments in advance of a formal DDS determination if there is a high degree of probability of approval.

The Takeaway

Even though wait times and delays continue to grow, and are even longer for disability appeals, fast track processes are specifically designed for people with serious health conditions. It has been reported that about 6.9  percent of claims (or more than 181,000) received fast-track status in fiscal year 2015. The best way to navigate the SSA and ensure your application is put on the fast track is to engage the services of an experienced disability benefits attorney.

How can I qualify for Supplemental Security Income benefits?

Led by Sens. Patty Murray (D-WA) and Charles Schumer (D-NY), congressional lawmakers are proposing a one-time emergency payment in the amount of $581 for over 65 million individuals who currently receive retirement benefits and Supplemental Security Income (SSI).

The payments are designed to assist these recipients who were denied a cost of living adjustment in 2016. Those receiving retirement benefits who are slated to receive $5 per month in the coming year increasing the average monthly payment from $1,355 to $1,3660. Recipients of SSI were set to receive a mere $2 monthly increase in the maximum federal benefit to $735. The scheduled cost of living adjustments are tied to the Consumer Price Index, but these minor increases are considered to be “woefully inadequate” and do not help vulnerable seniors keep pace with the risings costs of daily life.

SSI at a Glance

The Social Security Administration pays Supplemental Security Income benefits to individuals with limited income and financial resources who are age 65 or older, disabled or blind. Children who are blind or disabled may also be eligible for these benefits. Unlike retirement benefits, SSI is not based on one’s prior work history, although it is means tested.

In addition, SSI beneficiaries may also be able to obtain medical assistance through the Medicaid program to cover the cost of hospital stays, doctor bills, prescription drugs and other healthcare costs. Further, many states also offer separate supplemental benefits to SSI recipients, some of whom may also be eligible for food assistance.

The SAVE Benefits Act

While Senate Democrats initially floated the plan last year, the Seniors and Veterans Emergency (SAVE) Benefits Act failed to pass. The measure was first introduced by Sen. Elizabeth Warren (D-MA), who tied the 3.9 percent increase to that of raises that many business executives reportedly received.

This would not be the first time Capitol Hill lawmakers approved such a measure as Social Security recipients received a one-time $250 payment back in 2009 – when Democrats had control of both houses of Congress. The proposed additional $581 would be the equivalent of three-months groceries for most seniors and would also help to cover out of pocket expenses for prescription drugs, according to Sen. Schumer.

Whether  Democratic leaders in the Senate are successful in making this proposal part of the post-election agenda remains to be seen. Nonetheless, qualifying for Supplemental Security Income and navigating the Social Security Administration system can be complicated. By engaging the services of an experienced Social Security benefits attorney, you can obtain the benefits you deserve.

What mental disorders qualify for social security disability benefits?

The Social Security Administration announced new rules in September concerning the criteria the agency will use to evaluate disability claims related to mental disorders. The new rules, slated to take effect on January 17, 2017, are said to be the most extensive changes to this criteria in more than 30 years. In devising the new rule, the SSA considered public comments to its proposed rule released earlier this year.

More importantly, the agency relied on the input from disability policy experts, SSA lawyers and judges, as well as the expertise of psychiatric professionals. The administration also worked closely with a variety of people who have direct interest or involvement in benefit programs for those with mental disorders, particularly disability beneficiaries and their families. In sum, the new medical criteria is being aligned with the mental health professions standards set forth in its Diagnostic and Statistical Manual of Mental Disorders (Fifth Edition).

“We are committed to updating our regulations to reflect up-to-date standards and practices used in the health care community,” said Carolyn W. Colvin, the Acting Commissioner of Social Security.

Mental Impairments at a Glance

Currently, the SSA has an official list of impairments (the so-called “blue book”) that contain medical conditions considered to be inherently disabling such as schizophrenia, autistic disorders, anxiety, depression, bipolar disorder, mental retardation and substance abuse disorders. This requires a disability examiner to make a determination if an applicant’s symptoms of a cognitive, mental or emotional disorder meets the criteria  listed in the blue book.

The SSA has taken this action to update its criteria for evaluating intellectual disability as many of these individuals have significant problems functioning and do not have daily practical and social skills. The agency will now rely on new diagnostic and functional criteria, along with IQ test scores, in order to more expediently identify those who may qualify for disability benefits.

The Takeaway

In the end, qualifying for disability benefits should become less complicated for people with mental disorders. These individuals are particularly vulnerable, and it is critical to ensure that they get the benefits, service and support they need, and deserve.

Nonetheless, navigating the social security system can be a daunting challenge, and many applicants are met with long delays or are subsequently denied. For this reason, if you are trying to obtain disability benefits for a loved one suffering with a mental disorder, you are well advised to engage the services of an experienced disability benefits attorney.

Am I eligible for SSDI if I am suffering from post traumatic stress disorder?

Have you been involved in a traumatic event? Are you plagued by feelings of hopelessness, guilt or shame? Do you have difficulty concentrating or remembering things? Are you angry and irritable? Do you have trouble sleeping or experience excessive anxiety or fear?

If you answered yes to these questions, you may be suffering from post traumatic stress disorder (PTSD). If these symptoms are interfering with your everyday life, you should medical attention. Certainly, most individuals who survive a traumatic event suffer a certain amount of shock or fear, but those with severe symptoms will get worse without treatment: often a combination of medication and counseling. Those who are unable to work due to PTSD may also be eligible for social security disability benefits. 

SSDI and PTSD

In order to obtain disability benefits for PTSD, it is necessary to satisfy the criteria listed in the Social Security Administration’s Blue Book. This means that there must be medically documented evidence of one of the these symptoms:

• Repeated, disturbing memories of a trauma that result in severe distress
• Long lasting anxiety
• Irrational fear of a particular object or place that makes one avoid it
• Frequent panic attacks occurring once a week or more
• Persistent obsessions and compulsions

In addition, it is necessary to demonstrate that these symptoms cause significant limitations in at least two areas: daily living, social functioning, or concentration, persistence, or pace. Alternatively, the symptoms must leave an individually totally incapable of functioning independently outside of the home.

On the other hand, those who do not meet the above-listed requirements may still be eligible for benefits though a “medical vocational allowance.” This is a specific approval that takes into account an applicant’s work history, age, education and “Residual Functional Capacity.” This refers to the amount of activity an individual is capable of performing despite his or her impairments.

Medical Evidence of PTSD

As with any disability claim, it is necessary to provide medical evidence of PTSD and any other impairments related to the traumatic event. This evidence includes records of inpatient or outpatient psychiatric treatment and counseling and therapy notes. In some cases, it may also be helpful for a medical provider to submit an RFC form. 

The Takeaway

In the end, there is a growing awareness of the debilitating effects of PTSD, and those who are suffering with this disorder may obtain relief with proper medical treatment. For those who meet the SSA’s criteria, disability benefits are also available. Nonetheless, submitting an application is a complicated process that requires the advice and counsel of an experienced disability benefits attorney