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Saturday, August 8th, 2015

Haunted by Student Debt to the Grave

Author:     Mary Green Swig, Steven L. Swig and Roger Hickey
Source:     Truthout
Publication Date:     Tuesday, 04 August 2015 00:00
Link: Haunted by Student Debt to the Grave
Stephan:   Here is the latest on America's out of control student debt problem. At the moment I am in Sweden presenting at a water conference. There are a number of college and even some high school students in the audience and I have enjoyed talking with them about their educational experience. College for these Scandinavians, they come from several countries, is so radically different than what I hear from American students that I can hardly reconcile the differences. For these kids college is either free or very low cost. Neither they nor their families, they tell me, have any particular concern about cost, and the idea of graduating with a life-long debt that they and their families must shoulder seems, as one young woman told me, "deeply weird." I can only agree.
Credit: Shutterstoock

Credit: Shutterstoock

It will not be news to 41 million Americans that this nation is in the middle of a student debt crisis. That’s the number of people burdened by student loan payments. But many people, including many student debt holders, may be surprised to learn that people can be pursued for student debt even into their elder years.

In fact, the government is withholding Social Security payments for some retirees because their student loans have not been fully repaid. This is a growing problem that Sens. Elizabeth Warren (D-Mass.) and Claire McCaskill (D-Mo.) have asked the government to study in greater depth.

“Garnishing Social Security benefits defeats the entire point of the program – that’s why we don’t allow banks or credit card companies to do it,” said Sen. McCaskill. “Social Security is the sole means of retirement income for tens of millions of Americans, and allowing those benefits to be garnished to collect student loan debt cuts a dangerous hole in our safety net.”

That is one problem with this practice. But, as we will see, […]

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2 Comments

  1. Anne B. on Saturday, August 8, 2015 at 4:57 am

    I’m on Social Security. My “Forbearances” were used and I have begun to again pay my student loan debt monthly. The amount of my loans was $16,000 when I finished graduate school and is now about $8,000 (mostly rent, food and books). This is a hardship. Two days ago a message on my machine told me I was eligible for a “forgiveness” or “lowering” my monthly installment. I haven’t heard anything more from them. I’d like to have my loans forgiven. And, Social Security should NOT be garnished. Very often this is the only income we seniors have.

    • Rev. Dean on Saturday, August 8, 2015 at 8:32 am

      That is why we need to reevaluate the “socialist option” and elect Bernie Sanders for President and anyone who supports him into congress.