The Debt Collection Improvement Act of 1996, 31 U.S.C. §3716, gives the
government authority to offset certain federal benefits to collect debts owed
to federal agencies. Recent litigation filed by the National Consumer Law Center,
Public Citizen Litigation Group and other advocates challenges the government’s
authority to offset benefits to collect old student loan debt.
For court decisions on this issue, see Guillermety v. Secretary of Education,
241 F. Supp. 2d 727 (E.D. Mich. 2002); Lee v. Paige, 2003 WL 21949767
(W.D.Mo. 2003).
and NCLC