WASHINGTON—The federal govt is an increasing number of taking money out of recipients’ Social security checks to get better millions in unpaid pupil debt, leaving hundreds of retired and disabled americans with beneath-poverty incomes, in line with a report set to be released Tuesday.
the federal government has accrued about $ 1.1 billion on the grounds that 2001 from Social safety recipients of all ages over unpaid pupil loans, the government Accountability place of work stated. that includes $ 171 million in Social safety advantages in fiscal 2015 alone.
in the year via September 2015, about 114,000 americans age 50 and older had their Social safety advantages decreased to offset defaulted scholar loans. That figure—which includes 38,000 individuals age sixty five or older—has risen 440% due to the fact that 2002.
The document highlights the rising number of child boomers who are entering retirement with student debt, lots of them in default on loans from decades in the past. About 4 in 10 borrowers whose Social security exams were garnished have held the debt for a minimum of 20 years, the report said. most of the borrowers took out the loans to pay for their very own educations, though a massive share borrowed to lend a hand pay for his or her children’s schooling.