Social Security & Student Loans

When you sign-up for student loans you are responsible for them. In fact, did you know if you have any unpaid student loans going into retirement the Feds are increasingly recovering the debt by deducting it from Social Security benefits. $171 million was collected in 2015, with the numbers expected to continue to rise as baby boomers head for retirement. Most affected in 2015 were age 50 or older and receiving disability benefits.

This report highlights sharp growth in baby boomers entering retirement with student debt. Most of the money was borrowed years ago to cover their own educations but some was used to pay for their children’s schooling. Overall, about seven million Americans age 50 and older owed about $205 billion in federal student debt last year. About 1 in 3 were in default, raising the likelihood that garnishments will increase as more boomers retire.

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