Borrowers who defaulted on federal student loans are no longer at risk of having them Social Security benefits are on displaya spokesman for the education department said Tuesday.
Last month’s government Reboot Collection For millions of people defaulting on loans. An estimated 452,000 people over the age of 62 fulfilled their student loans by default, according to a January report from the Consumer Financial Protection Agency.
The department has not graced social security benefits since the collection reopened after the pandemic and has suspended “future social security offsets,” said department spokesman Ellen Keist.
“The Trump administration is committed to protecting Social Security beneficiaries who often rely on bonds,” Keyst said.
Advocates have encouraged the Trump administration to go further to provide relief to around 5.3 million borrowers by default.
“Simply suspending tactics for this collection is terrible insufficient,” says Persis Yu, executive director of Student Borrower Protection Center. “The ongoing efforts to resume government debt collectors are cruel and unnecessary, and will incite further flames of economic disruption for working families in this country.”
Elderly student loan debt has grown at an incredible rate, partly due to the increased tuition fees that forced more people to borrow in large quantities. Over 60 years old Holds an estimated $125 billion in student loansaccording to the National Consumer Law Center.
It led social security beneficiaries who gave their payments On the balloons From about 6,200 beneficiaries to 192,300 between 2001 and 2019, according to the CFPB.
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Associated Press writer Collin Binkley contributed to this report.
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