Parents & Grandparents: don’t subsidize your kids’ / grandkids’ student debt!
The Daily Caller reports:
Social Security Withheld From 114,000 Seniors Because Of Student Loans
Social Security benefits were withheld from an estimated 114,000 individuals of at least 50 years in age as of 2015 in order to repay their student loan debts, a congressional watchdog reported Tuesday.
“An increasing number of older Americans have defaulted on their federal student loan debt,” the Government Accountability Office (GAO) wrote in a blog post. “To recover this debt, the federal government can withhold a portion of Social Security payments — a process known as offsetting.”
The 114,000 total borrowers assessed marks a fourfold increase since 2002.
“This number is expected to continue to grow given the increasing number of older borrowers and their high rates of default,” the blog post said.
Incur debt and not repay after 30+ years? I’ve got precious little sympathy if the funds are withheld from their SS checks. Bottom line is don’t borrow to buy a product that won’t provide ROI. If you fail to learn this by 25, it’s not to late at 65.
Spot on Gary. When is this higher education bubble expected to burst? Looking at college acceptance rates it doesn’t seem to be anywhere close. Too much demand. Not enough supply. Thus tuition rates will continue to rise.