Falling behind on student loan payments can squash a borrower’s hopes of building savings, buying a home or even finding work. Now, thousands of retirees are learning that defaulting on student-debt can threaten their Social Security benefits. Many of these retirees aren’t even on the hook for their own educations- the borrowers went into debt later in life to help defray education costs for their children or other dependents.
The amount that the government withholds varies widely, though it runs up to 15%. From January through August 6, the government reduced the size of roughly 115,000 retirees’ Social Security checks on those grounds. This figure is up more than 55,000 in 2011’s enforcement.
For full article: For Unpaid College Loans,Feds Dock Social Security – SmartMoney.com.
- New retirees receiving less in Social Security than they paid in, marking historic shift (foxnews.com)
- Social Security benefits are fading (enterprisenews.com)
- Face the Facts USA No. 9: Think You Know Who Gets Social Security? Think Again (troyrecord.com)