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Feds Docking Social Security Checks For Unpaid Student Loans

It's no secret that 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 something that used to be untouchable: their Social Security benefits.

According to government data, compiled by the Treasury Department at the request of SmartMoney.com, the federal government is withholding money from a rapidly growing number of Social Security recipients who have fallen behind on federal student loans. From January through August 6, the government reduced the size of roughly 115,000 retirees' Social Security checks on those grounds. That's nearly double the pace of the department's enforcement in 2011; it's up from around 60,000 cases in all of 2007 and just 6 cases in 2000.

Source: Smart Money. Read full article. (link)

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  • AmeriLoanSearch company||

    Now that we see how big the problem with student loans is don't we want to revise loans rules at all? I mean, it has to be affordable. It is ridiculous to be retired and still think about your student loan. It is very easy to involve Social benefits of course, but our government should look deeper into the real problem. It doesn't mean of course that young people can be careless. It is a meaning of cooperation.

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