Student indebtedness borrower shares her communicative
The Trump medication says it's pausing the garnishment of Social Security benefits for pupil indebtedness borrowers who person defaulted.
That means a impermanent intermission connected a decision announced successful April to restart collections connected pupil loans successful default. On May 5, the restart argumentation was enactment into enactment erstwhile the Education Department began involuntary collections done the Treasury Department's offset program, which claws backmost overdue debts by garnishing national payments specified arsenic taxation refunds and Social Security checks.
The halt comes aft the Trump medication past period retreated from different benignant of Social Security payment clawback, erstwhile it announced it would lone instrumentality 50% of a person's monthly check to retrieve overpayments, down from a antecedently announced 100%. In that case, advocates for elder citizens had expressed interest that the argumentation would pb to hardship, fixed that one-third of Social Security recipients rely connected their monthly payment cheque for astatine slightest 75% of their income.
In a connection emailed to CBS MoneyWatch, the Education Department said it hasn't offset immoderate Social Security payments due to the fact that of pupil indebtedness since it resumed collections connected May 5.
The section "has enactment a intermission connected immoderate aboriginal Social Security offsets," spokeswoman Ellen Keast said successful the email.
She added, "The Trump Administration is committed to protecting Social Security recipients who oftentimes trust connected a fixed income. In the coming weeks, the Department volition statesman proactive outreach to recipients astir affordable indebtedness repayment options and assistance them backmost into bully standing."
While astir radical whitethorn deliberation of pupil borrowers arsenic caller grads who are juggling indebtedness repayments with different surviving expenses, determination are astir 3.6 cardinal radical implicit 60 who transportation pupil indebtedness debt, according to Bankrate.
About 452,000 radical implicit 62 — the earliest property erstwhile 1 tin cod Social Security benefits — person defaulted connected their pupil loans, the Consumer Financial Protection Bureau said earlier this year.
Aimee Picchi is the subordinate managing exertion for CBS MoneyWatch, wherever she covers concern and idiosyncratic finance. She antecedently worked astatine Bloomberg News and has written for nationalist quality outlets including USA Today and Consumer Reports.
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