WASHINGTON ― Student debt is forcing tens of thousands of elderly Americans into poverty, according to a new Government Accountability Office report.
The findings are startling. More than 110,000 senior citizens had their Social Securitychecks garnished in 2015 to pay off student loans they’d already defaulted on. Nearly 70,000 Americans over the age of 50 are living in poverty as their Social Security benefits are cut to pay off student loan debts.
Student lending is typically thought of as a millennial problem ― one of exploding college tuition costs and ruthless interest rates that took hold over the past 20 years.
But the GAO report ― requested by Sens. Elizabeth Warren (D-Mass.) and Claire McCaskill (D-Mo.) ― demonstrates that the debt hardship is shared across generations.
The elderly student debt nightmare is not going to sort itself out. A full 68 percent of older borrowers living in poverty with Social Security garnishment are only seeing their benefit cuts devoted to interest and fees. Their overall debt burden is not diminishing. They will never stop making payments under the current system without a new source of income. Full story here