Borrowers who have failed on their federal student loans will no longer risk The advantages of social security garnishedA spokesman for the Department of Education said on Tuesday.
The government last month Restarted collections For millions of people in default on their loans. It is estimated that 452,000 people aged 62 and over had default student loans, according to a January consumer financial protection report.
The Department has not garnished social security services since the post-country recovery of the collections and has interrupted “any future social security compensation,” said spokesperson for the Department Ellen Keast.
“The Trump administration is committed to protecting social security beneficiaries who are often based on fixed income,” said Keast.
Lawyers encouraged the Trump administration to go further to relieve the approximately 5.3 million default borrowers.
“The simple break of this collection tactic is terribly insufficient,” said Persis Yu, executive director of the Borrower Protection Center Student. “Any continuous effort to restart the government’s recovery machine is cruel, useless and will more attract the flames of economic chaos for families of workers across this country.”
Student loan debt among the elderly has increased at an amazing pace, partly due to the increase in tuition fees which forced more people to borrow strongly. People 60 years and over Hold around $ 125 billion in student loansAccording to the National Consumer Law Center, an increase of six times compared to 20 years ago.
This led the beneficiaries of Social Security who had their payments garnished Ball Since about 6,200 beneficiaries at 192,300 between 2001 and 2019, according to the CFPB.
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The author of the Associated Press, Collin Binkley, contributed to this report.
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