Social Security Benefits to Be Confiscated for Nearly Half a Million People

[nitpicked]

https://www.newsweek.com/social-security-benefits-confiscated-student-loan-debt-2072570

Millions of Americans who rely on Social Security could see some of their monthly benefits seized, starting in June, if they have defaulted on their student loan debts.

Roughly 2.9 million Americans aged 62 or older hold federal student loan debt, a number that has grown by more than 70 percent since 2017, according to the U.S. Department of Education. According to CNBC, more than 450,000 elderly borrowers are currently in default and potentially subject to benefit reductions.

The Trump administration has resumed aggressive collection efforts that were paused during the COVID-19 pandemic.

Through a process known as Treasury Offset Program (TOP), the federal government can offset up to 15 percent of Social Security benefits to repay defaulted federal student loans. They cannot reduce your monthly check to lower than $750.
(snip)

[mucifer]

1. To me it's one of their least horrific policies because it was what was happening before the pandemic

[hlthe2b]

2. All I can think of is the explosion of homeless in coming years. Whether they defaulted on anything, or not.

Right now, I see NOTHING positive in the future, no matter how determined I am to make it so--and I am. The damage from Trump's 100 days will be lasting--not to mention what lies ahead in his term. He is surrounded by determined, horrific people, so I will not make the mistake of underestimating him.

[newdeal2]

11. Let me know when the billionaires and corporations pay back their tax breaks

PPP loans and bailouts.

[chouchou]

3. That's not too bad. 750 is enough to pay most rent/mortgages. Other somewhat necessary living stuff...

....like food, power, transportation, health needs might be just a little problem.
Of course, Grandma may have options.. "HI! Welcome to Walmart"

[JCMach1]

9. $750 will not even get you bedspace where I live

[chouchou]

10. Quite true. Grandma would have to live in Hogsville Mississippi.

[JCMach1]

12. Shared single wide in Climax, GA

[chouchou]

13. I've always wanted to live there. ..In my nightmares.

[Silent Type]

4. They can take up to 15%, not confiscate the entire mount. Student loan holders have hopefully already converted

to an Income-driven repayment plan. Fine with total forgiveness, but it ain't in cards for at least awhile.

[BoRaGard]

5. KlawBacker Krasnov (R - Felon/Rapist) and G.O.P. Kronies want your money

so they can give tax breaks to rich republicons.

[TheBlackAdder]

6. Are they making people reimburse from payment or are they subtracting balance due from contributions?

I would think the better way to do this is to calculate

(the person's SS contributions + employer matching funds, which is factored into the total employee compensation & interest accrued on that money) - (student loan debt) = SS contribution amount used to calculate monthly payments.


Between my personal contributions and my employer matching funds, I'm probably over $600K in the system before interest accrual is even factored into the equation.

If DOGE or whomever wants to cash me out, they should pony up what was put into it over my 45 years working with interest.

[choie]

7. Too bad they don't have the option

Of bankruptcy like Krasnov did 5 times.

[MichMan]

8. Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Passed the House 302-126 and the Senate 74-25. Signed into law by President George W. Bush on April 20, 2005