In 2002 the U.S. began withholding a portion of Lockhart's Social Security payments to offset his debt on federally reinsured student loans that were more than 10 years overdue. Lockhart sued, arguing the offset was barred by the 10-year statute of limitations of the Debt Collection Act (1982). The district court dismissed Lockhart's suit, and the Ninth Circuit affirmed.

Question:

Could the United States offset Social Security benefits to collect a student loan debt that had been outstanding for over 10 years?

Conclusion:

Yes. In a unanimous opinion delivered by Justice Sandra Day O'Connor, the Court held that the Debt Collection Improvement Act made Social Security benefits subject to offset and that the Higher Education Technical Amendments removed the 10-year limit that would otherwise bar the offset.

Decisions

Decision: 9 votes for United States, 0 vote(s) against
Legal provision: 31 U.S.C. 3716

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