An Honest, Clear Voice In SSI/SSDI Care

Does getting a loan impact my SSI benefits?

On Behalf of | Sep 12, 2019 | Supplemental Security Income (SSI)

When Oklahomans apply for Supplemental Security Income, they will undoubtedly understand there are certain rules to being approved and retaining benefits. In addition to needing to meet the income and resource requirements, the person must also be disabled, blind or 65 and older. Circumstances can also have an impact on the SSI benefits the person gets per month. If, for example, the SSI recipient takes out a loan, this can alter the amount they are getting in SSI benefits. Understanding how this works is an important facet of the entire process.

Anything the person receives from another person or entity that will be paid back later is considered a loan. There can be a loan agreement with a bank or a person. It can be a written agreement or it can be an oral agreement. For it to be considered a legal loan, it must be enforceable based on state law. A loan does not necessarily need to be money. It can be, of course. But it can also be food, shelter and items related to shelter like rent and utilities.

The loan can impact the SSI benefit. When there is a valid agreement for a loan, its value will not be considered income. It will not lead to the SSI benefits being reduced. If the person takes out a loan and does not spend the full amount, it will then be calculated in the context of the resource limits for SSI. For an individual, that limit is $2,000. For a couple, it is $3,000.

Those who lend money to another person should know what is owed can be viewed as a countable resource and be calculated in the person’s eligibility for SSI. People who lend money to someone else and have a loan agreement with interest due are safe from having this viewed as income by the Social Security Administration.

Loans can be necessary for people who are having trouble making ends meet even if they are receiving SSI benefits. It is wise to remember how that can affect the SSI benefits and the resource calculation. To be fully protected and understand how a loan is assessed with SSI Supplemental Security Income, a law firm that has experience in these matters can help.