Still owe student loans? Your Social Security payments may be used to pay them off

By Jonathan D. Salant | NJ Advance Media for NJ.com

on December 22, 2016 at 2:24 PM, updated December 23, 2016 at 8:43 AM

WASHINGTON — Social Security recipients who owe student loans have found their payments garnished to pay off their debt and some have been forced into poverty as a result, according to a report released Thursday by the investigative arm of Congress.

The Government Accountability Office said 114,000 Americans receiving Social Security payments either because of their age or disability have had their payments cut because of outstanding debt, an increase of 540 percent over a decade. More than two-thirds of recipients in default, 69 percent, were on disability.

Most of the money collected, 70 percent, went to pay interests and fees, not to reduce the outstanding balance. Among those over 65, the number receiving Social Security benefits below the poverty grew to 67,300, up from 8,300 in 2004, the GAO said.

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