Can you imagine being 65 or 70 and still being on the hook for student loans? And your Social Security check being garnished to pay it back?
In 2013, the federal government garnished more than $150 million in Social Security benefits from Americans who still owed Uncle Sam for student loans borrowed during their working years, according to Government Accountability Office. A report on MarketWatch.com said between 2002 and 2013, the number of senior citizens losing a portion of their Social Security to pay back education ebt soard 500% from 6,000 to 36,000 people.
The online financial site estimates that the number is expected to grow as more mature Americans take on loans for their own education — to be more competitive in a changing economy — or for their children. More than 3 million Americans ages 50 to 64 are in default on those student loans, which will put them at risk of having their benefits garnished when they apply for Social Security.
MarketWatch detailed the story of Naomia Davis, who despite having Alzheimer’s, is still expected to pay back loans she took out 30 years prior to go back to school for cosmetology. The feds each month takes $134 of her $894 Social Security benefit.
Money photo, Dreamstime under the RF-LL License.