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Student Loan Debt for those over age 50

Hello!  I'm new to this forum, but I wanted to know if AARP is advocating on behalf of those who are 50 and over, and still have a very high amount of student loan debt, and are deathly afraid of not being able to retire as well as having the government garnish SS payments to pay off a debt(s) that will continue to grow with the interest?  I think this is a very timely issue, and since there are so many of us, I really would like for AARP to have some skin in the game!  I did see some posts from 2021, but haven't seen any updated posts or where AARP stands as it relates to this issue!  I'm doing everything I can to assist in my retirement such as having a ROTH, and other savings vehicles, but the thought that the gov't can take my SS, which would leave very little to live on, scares the crap out of me!  I know that my portfolio is subject to the markets, and what gains I receive could be wiped out!  I truly hope that AARP will look at this as a very hot button issue that affects millions of people over 50, and get on board with some kind of campaign as they did with prescription drugs, which I greatly appreciate, and welcome, but this is also a very dire situation for millions of us!  Thank you!

Contributor

Get into Income Based Repayment to avoid having SS garnished. Even though payments will be very low (even zero) and won't really help to pay down the debt that much as interest accumulates, there is an end date when debt will be forgiven and even if your payments are zero, you're "in repayment" so no garnishment. One major problem with this is that as the loan slowly grows with interest, your loan to income ratio gets out of whack so you can't get approved for a bank loan or a mortgage once it gets high enough. If it's a federal (as opposed to private) loan, it will be forgiven at death—private lenders vary in their policy about this.

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Honored Social Butterfly

Why do you think this is ethical - just stick it to the taxpayers????  Or cut out funds for other senior/disabled services?

 

CBO.gov - Costs of Suspending Student Loan Payments and Canceling Debt

from the link:

CBO estimates that the cost of outstanding student loans to the federal government will increase by about $400 billion because of an executive action canceling some debt.

 

CBO also estimated that the administration's plan to extend the pause on loan repayments by four months would cost roughly $20 billion.

 

It's Always Something . . . . Roseanna Roseannadanna
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Honored Social Butterfly

There is a $ 10,000 or $ 20,000 Student Loan Forgiveness already in the works courtesy of the Inflation Reduction Act ) don't ask me about the name of the Act or the linkage of it to the student loan forgiveness.  The President has said - that's it!

Business Insider 09/06/2022 - Biden is making it clear that his broad student-loan forgiveness plan ...

 

However, depending upon the (private) school there could be other forgiveness programs - but I thought those folks had already been notified.  Like if the school is one of the ones that have some fraud claims against them.

Then there is also the public service forgiveness program which I believe have been expanded to cover more public service jobs / areas.

Currently it appears the loan forgiveness by an EO is being tested in court.  But applications are supposed to be coming out this fall if all goes well legally - maybe / maybe not.

But be careful because the scammer are already going strong.  

 

It's Always Something . . . . Roseanna Roseannadanna
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Community Manager

Good information. Thanks!

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Hi Gail,

 

Thanks for the information, but I was already of aware of the possible debt forgiveness.  I would like to see specific action from AARP to at least try and have a discussion about this  very adverse action coming to bear on those 50 and over.  I am aware of the various programs to possibly assist now, but I'm talking about in the very near future for a lot of adults 50 and over, and the very real threat that the government will garnish SS monies to pay down debt if you cannot make your student loan payments.  I would like to see AARP take-up the mantle on this issue.

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