About Sallie Mae

• Sallie Mae is a financing institution that offers several varieties of private student loans, as well as savings accounts, certificates of deposit and savings plans. Before 2008, Sallie Mae also offered federally-backed consolidation loans. However, because the College Cost Reduction and Access Act cut the profits Sallie Mae received from these loans, they no longer offer this option to new borrowers.
  
  

Debt Collection

• Under federal law, SSDI is exempt from garnishments by commercial creditors, such as credit card and mortgage companies. However, if you owe child support, back taxes or federal student loans, your benefits may be subject to garnishment. Sallie Mae can only garnish your SSDI benefits if you owe money on a federal student loan. If you borrowed money from Sallie Mae through a private student loan, it can't garnish your disability payments.
  
  

Veteran Benefits

• If you receive Veteran benefits, such as disability compensation, they aren't typically subject to garnishment by Sallie Mae or any other entity collecting student loan debt. Veteran benefits are exempt from garnishment whether the debt resulted from a private or federal student loan. Sallie Mae can't take benefits from your Veteran disability paycheck, nor can it seize Veteran benefits from your bank account.
  
  

Considerations

• Though Sallie Mae can't garnish SSDI for private student loans, it can still take other collection actions to recover the debt. Sallie Mae can obtain a judgment against you, which it can use to levy your bank account, garnish your earned income or seize your property. Sallie Mae can also report the debt to the major credit bureaus, which may lower your credit score and prevent you from borrowing additional funds.