Senator Bernie Sanders of Vermont introduced legislation on Tuesday that would prevent the federal government from garnishing Social Security benefits from older Americans and people with disabilities who have fallen behind on their student loans. The proposal, titled the Stop Social Security Garnishment Act, comes as millions of federal student loan borrowers remain in default and are facing potential collection actions. Sanders said the measure is intended to ensure that retirees and disabled beneficiaries are not stripped of their Social Security income to repay decades-old education debt.
"As a result of Trump's disastrous cuts to education, an increasing number of seniors are in danger of having their Social Security checks garnished to pay back student loans they took out decades ago. That is beyond unacceptable," Sanders said in a statement. "In the richest country in the history of the world, no senior should have their Social Security payments taken away from them to pay back student debt.
This is especially true when seniors throughout the country already cannot afford the skyrocketing price of health care, prescription drugs, groceries and housing. Congress must pass this legislation." Senators Elizabeth Warren of Massachusetts, Ed Markey of Massachusetts and Ron Wyden of Oregon have co-sponsored the legislation alongside six other Democratic lawmakers. The bill targets a growing issue affecting older borrowers as student loan balances increasingly follow Americans into retirement.
About 9 million Americans are currently in default on their student loans and could face collection measures, which includes garnishment of wages or Social Security benefits. According to Sanders' office, more than a third of Social Security recipients with student debt rely on Social Security benefits to make ends meet. The Stop Social Security Garnishment Act would prohibit the federal government from garnishing Social Security payments, including Social Security Disability Insurance (SSDI) benefits, to collect on student loan debt.
Retirees and disabled Americans who receive Social Security or SSDI and are struggling with federal student loan debt would benefit under the law, particularly those whose loans have entered default. "Sanders' proposal would draw a clear line between student loan collection and security of retirement savings by preventing the federal government from taking Social Security retirement or disability benefits to collect defaulted student debt," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "The fact that millions of older Americans still carry student loans shows the changing landscape of student loans and their impact," he added.
Sanders announced the legislation on August 17 but introduced it officially on Tuesday. The proposal now faces the standard legislative process, including committee consideration and votes in both chambers of Congress before it can become law. "While the bill would provide support for this population, its passing will run into difficulties, as some in Congress are concerned any support of student loan relief will appear to be advocacy of potential forgiveness," Beene said.
Extract — continue reading at the source.
