From MarketWatch:
The Trump administration is turning on some of the harshest consequences for falling behind on student loans.
Starting on May 5, the government is restarting debt collection on defaulted student loans. As part of these efforts, the Department of Education is restarting the process that allows for borrowers who are in default on their student loans to have their Social Security benefits and tax refunds offset to repay the debt, the U.S. Education Department announced Monday. Early this summer, the government will also begin garnishing wages to repay defaulted student loans.
This will mark the first time in five years — since the collections system was paused as part of the pandemic-era freeze on student-loan payments — that borrowers have faced these consequences for defaulting on student loans (defined as not making a payment on the debt in more than 270 days). …
You might think that few Social Security beneficiaries have student loans but you’d be wrong. Many do and the limited income of those who do makes it difficult for them to make student loan payments. Remember that those who are disabled are eligible for relief from their loans — but most don’t know this.
5 comments:
A lot of older affected individuals don't have loans themselves, but cosigned for loans for their children or grandchildren. This, of course, made them liable when the loans weren't paid.
SSA used to share data with the Department of Education on people with CDR diaries that would qualify them for student forgiveness. But disabilitydischarge.gov has been nonfunctional since December 2024 and I'm guessing this is not a high priority for DOGE...
So sympathy here. Be careful who you sign for or what you up for.
Good. Pay them loans back. We've had far too many people saying somebody else should pay. The growth of college is for everyone is wasteful from the start.
if you take out a loan then you are expected to repay it. Any questions?
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