Millions of seniors behind on student loans risk losing Social Security, lawmakers warn Biden
Economy And Jobs,Seniors,Student Loans,Banking And Finance,Social Security,Medicare
Millions of older Americans are at risk of losing some of their Social Security benefits after defaulting on student loans, Democratic lawmakers said in a letter urging the Biden administration to act.
Why it matters: Seniors are one of the highest risk categories with reports showing nearly 40% of borrowers aged 65 or older in default. Federal programs that claw those funds back mean seniors lose as much as $2,500 in Social Security benefits annually.
Sens. Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.) and U.S. Reps. Ayanna Pressley (D-Mass.), Pramila Jayapal (D-Wash.), Raúl Grijalva (D-Ariz.) and John Larson (D-Conn.) led the effort in a Tuesday letter, which gathered over 30 total signatures.
More than 3.5 million Americans at or above the age of 60 hold student loan debt, collectively amounting to over $125 billion, per 2023 data from the think tank New America that lawmakers cited.
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