There’s an old saying regarding two certainties in life: Death and taxes. As it turns out, you can also be pretty certain of another: The U.S. government is probably never going to forgive your student loan debt.
In fact, not only with the government hound you throughout all your working years – no matter how little you actually earn – you can bet calls for payback won’t end when you retire. That’s due to legislation passed by Congress in 1996. The little-known law gives the government the power to garnish the wages of Social Security checks (paid to those over the age of 65) for student loan debts.
As of right now, according to a new report from the Government Accountability Office, there are approximately 700,000 senior citizens receiving Social Security who still have student loan debt. Of those, more than a quarter are in default and are having their monthly stipends garnished to repay those loans. The government takes 15 percent of the total, assuming that leaves the retired worker with at least $750 a month. Continue reading