In an effort to recoup millions of dollars in unpaid student loan debt, the government has resorted to taking money from borrowers’ social security checks. Since 2001, the government has collected about $1.1 billion from recipients of all ages. In 2015 alone they collected $171 million. This has left thousands of retired or disabled Americans with below-poverty incomes, according to a recent report from the Government Accountability Office.
As of September 2015, 114,000 Americans who were 50 and older had their Social Security benefits reduced to offset defaulted student loans, according to the report. Since 2002, the figure has increased by 440%.
The report identifies an increasing trend of baby boomers entering retirement with student loan debt. According to the report, approximately 43% of people whose Social Security checks were decreased have held their student loans 20 years or more.
Borrowers who are determined to be permanently and totally disabled are entitled to have their student loan debt forgiven, though many are unaware of the option, according to the Wall Street Journal. Currently, the government’s student-loan portfolio is $1.26 trillion, with an increasing number of people continuing to fall behind on their payments.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.