No Social Security garnishment for student loan defaulters

    0
    0

    Borrowers who have defaulted on their federal student loans will no longer face the possibility of having their Social Security payments garnished, according to a statement released by the Education Department on Tuesday.
    The government resumed collections last month for millions of individuals whose loans have lapsed into default. Data from the Consumer Financial Protection Bureau in January revealed that approximately 452,000 individuals aged 62 and above had student loans in default.
    Since the renewal of collection activities after the pandemic pause, the department has not garnished any Social Security benefits and has put a hold on any forthcoming Social Security offsets, as confirmed by department spokesperson Ellen Keast.
    Keast stated, “The Trump Administration is dedicated to safeguarding Social Security beneficiaries, many of whom depend on a stable income.”
    Advocacy groups have urged the administration to extend relief efforts for the estimated 5.3 million borrowers currently in default.
    Persis Yu, executive director of the Student Borrower Protection Center, remarked, “Merely pausing this collection method is drastically inadequate. Any ongoing attempts to reignite the government’s debt collection efforts are harsh, redundant, and will only exacerbate the economic turmoil facing working families nationwide.”
    Student loan debt has surged alarmingly among the older population, partly due to escalating tuition costs compelling more individuals to take on significant debt. Reports from the National Consumer Law Center estimate that individuals aged 60 and above now hold around $125 billion in student loan debt, a figure that has increased sixfold in two decades.
    This situation has led to a sharp rise in Social Security beneficiaries experiencing garnished payments, soaring from about 6,200 in 2001 to 192,300 by 2019, as reported by the CFPB.