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.
READ MORE: http://www.smartmoney.com/borrow/student-loans/grandmas-new-financial-problem-college-debt-1344292084111/
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