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College Debt Could Lower Your Social Security Checks

August 14, 2012 By Peter 1 Comment

Get this… if you have defaulted on a college loan the Social Security administration has been docking Social Security checks. Smartmoney.com reports that Baby Boomers that default on  student-debt can have their Social Security benefits reduced.

“According to government data, compiled by the Treasury Department at the request of SmartMoney.com, the federal government is withholding money from a rapidly growing number of Social Security recipients who have fallen behind on federal student loans. From January through August 6, the government reduced the size of roughly 115,000 retirees’ Social Security checks on those grounds. That’s nearly double the pace of the department’s enforcement in 2011; it’s up from around 60,000 cases in all of 2007 and just 6 cases in 2000.”

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