My bank account has been levied. What can I do?

Can an account be levied or judgment put on a bank account when the money in the account is from a direct federal student loan?

• Answer:

  The source of the asset really makes no difference. It is only in your accounting that it is student loan money....and there is nothing to say student loan money can't be used to pay off debts you have that aren't to the school is there? Generally, once you take charge of the funds, (as in the loan), they lose their integrity as being any particular type/source of money. Especially if comingeled with other funds. (For example, they can't seize SS checks, but once you cash it...it's no longer protected...it's like any other money). Had you had the money paid directly to the school, they probably couldn't have touched it..even knowing it was an "asset" you had coming.