Did you know that if you don’t pay your student loans on time, the EDUCATION DEPARTMENT can garnish your Social Security benefits?
“n the 2015 fiscal year, according to the Government Accountability Office, the government garnished the Social Security benefits of almost 114,000 student loan borrowers over 50 years old, reducing their benefits, on average, by more than $140 per month.”
That is wrong on so many levels. Having the Education Department take your retirement benefits paid for by the Social Security Administration. And guess what? You can’t discharge student loan debt in bankruptcy!
Oh, but you think this can’t affect many people? Think again.
“Americans over 60 years old are the fastest-growing category of student loan borrowers, having roughly quadrupled in number between 2005 and 2015…”
Not only are older Americans the fastest growing group of student loan borrowers and they “account for just a sliver of the more than $1.5 trillion in total outstanding student loan debt they’re more likely than younger borrowers to be behind on payments.”
This is bad, folks. Very bad. Growing debt levels hurt your retirement flexibility. And what exactly are you borrowing for to begin with? To help little Johnnie? Don’t do that. Please.
Let him go to community college for two years first, to prove he’s up for the task of attending university.
If he can’t get out of community college with shining colors, you certainly don’t want to risk you retirement on a 4 yr school.
Think long and hard before you go into debt for student loans for any reason!