New York, NY – Retirees who defaulted on their student loans may have the money taken out of their Social Security checks. Program implemented by Trump administration.
The Department of Education began collecting on defaulted student loan debt. Borrowers must make payments or risk the federal government coming after their Social Security checks. There are 3 million Americans over 62 that have defaulted on student – 452,000 seniors owe the government money for student loans.
Under the Trump administration, seniors who defaulted on student loans will have that paid back to the government by the amount deducted from Social Security payments. Retirees who rely on Social Security and defaulted on their student loan payments may see smaller Social Security payments.
Many student loan borrowers, especially those nearing retirement, have been paying back their loans for decades. They’ve paid the principal loan amount many times over, but keep falling behind because of high interest and fees.
