Court to mull unpaid loan penalty
By VICTORIA WILSON | April 28The Supreme Court will clarify soon whether the federal government can dock Social Security benefits from delinquent student borrowers, but experts say existing measures have lowered default rates successfully on student loans. The court will resolve two conflicting Circuit Court rulings about whether the government can garnish Social Security benefits to repay overdue student loans. The confusion stems from a series of conflicting federal debt collection laws.