Is Sallie Mae considered a government organization for purposes of placing a lien on IRA's or 401K's?
Sallie Mae is deemed a government organization with certain privileges or considered a general creditor?
Answered 7 years ago|
Typically, a 401k and IRA is protected from the claims of creditors. The exception would be if your creditor is a government organization, such as the IRS, then none of your accounts, not even your 401(k) plan or your pension plan accounts, is protected.
Specifically, with respect to Sallie Mae, the government has extraordinary power to collect student loans. The government can seize tax refunds, deny new student loans and grants, garnish wages without a court order, take a portion of Social Security benefits, and charge very large collection fees. Unfortunately, they can also attach an 401k and IRA.
Note: Except in rare circumstances, student loans cannot even be discharged in bankruptcy.
The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you go to AttorneyPages.com
and retain an attorney to represent you.