The Debt That Doesn’t Go Away

The student loan crisis has devastated the finances of so many students and graduates of the Millennial generation.  Now, even their grandparents are no longer exempt.  Social Security checks are now being garnished in order to pay back student loan debt that is often decades old.  One San Francisco retiree had her check reduced from $852 to $750 in order to recover a $5,000 loan that she took out to attend graduate school.  Relying on Social Security to get by in a city that is as expensive to live in as the Bay Area is hard enough, and losing money from that scant amount makes life exceedingly more difficult. Some 2 million Americans over the age if 60 still carry student loan debt.  They are finding out too late in the game that their Social Security income will be garnished to pay for those debts. “I was very surprised. I had believed up until then that was a protected source of income,” Said retiree Eileen Joyce. “I was already living on not enough money for any real quality of life.” The government has turned to private collection agencies, further limiting the options of those retirees. We can expect this to become a full-blown crisis for our generation when we are ready to retire, unless we come together and demand the choice to opt out.



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