Student loan debt doesn’t disappear when you retire. In fact, it could come back to haunt you in a big way and social security garnishment is a real possibility. More than 3 million Americans over age 60 still carry student loan debt. Many seniors are seeing their financial stability crumble under the weight of loans they took out decades ago—or even for their children.
The federal government has already restarted garnishing Social Security checks to collect on defaulted federal student loans. Now that the CARES Act protection has expired according to some reports, thousands of seniors could soon lose benefits.
According to Christina Randell, President of My Education Solutions, a Student Loan Management Firm, you can lose up to 25% of social security and disability benefits if you owe student loan debt. “Many of our clients in similar situations pay as low as $59 a month and they can receive 100% of the social security and disability checks.”
This isn’t just a problem for seniors. If you’re in your 40s or 50s, you may be next. Without a plan, your future benefits could be at risk. Older Americans are especially vulnerable. Garnishment can begin once a loan enters default—and once it starts, it’s hard to stop.
The impact student loans could have on seniors and the risk of social security garnishment could become an urgent crisis. But you still have time to act.
The smartest course of action is to seek out a student loan advisor now. Ask about income-driven repayment plans or consolidation options. Don’t wait until garnishment takes away your retirement income. Contact My Education Solutions and speak with a Student Loan Advisor to find the best strategy for handling your student loan debt.
