Grandma's new financial problem.

[Rion]

It's no secret that falling behind on student loan payments can squash a borrower's hopes of building savings, buying a home or even finding work. Now, thousands of retirees are learning that defaulting on student-debt can threaten something that used to be untouchable: their Social Security benefits.

For Unpaid College Loans, Feds Dock Social Security - SmartMoney.com

 

[Illuminaughty]

http://www.smartmoney.com/borrow/st...financial-problem-college-debt-1344292084111/

For Unpaid College Loans, Feds Dock Social Security - SmartMoney.com

Horrible idea.

We should fund higher education through tax revenues so no one will ever have to pay student loans back. It will keep stuff like this from happening in the future.

 

[John Lee Pettimore III]

Horrible idea.

We should fund higher education through tax revenues so no one will ever have to pay student loans back. It will keep stuff like this from happening in the future.

Because public education works so well.

@The OP.

If you borrow money, pay it back.

*shrug*

I don't have a lot of sympathy here.

 

[NightHawkeye]

For Unpaid College Loans, Feds Dock Social Security - SmartMoney.com

Interesting reading ... seems money's not free after all. Who knew?

The amount that the government withholds varies widely, though it runs up to 15%. Assuming the average monthly Social Security benefit for a retired worker of $1,234, that could mean a monthly haircut of almost $190. "This is going to catch an awful lot of people off guard and wreak havoc on their financial lives," says Sheryl Garrett, a financial planner in Eureka Springs, Ark.

Many of these retirees aren't even in hock for their own educations. Consumer advocates say that in the majority of the cases they've seen, the borrowers went into debt later in life to help defray education costs for their children or other dependents.
​

Of course the poor parents are the victims here. Obama really should cut them some slack. It's not really their fault that they didn't teach their kids responsibility, is it? Oh wait ... maybe it is.

Perhaps there really is a piper ... who expects payment ???

 

[Rion]

Because public education works so well.

@The OP.

If you borrow money, pay it back.

*shrug*

I don't have a lot of sympathy here.

I imagine many took it out with the belief that the kids/grandkids would pay it back after getting a job. So really, it's the kids' fault.

 

[Thekla]

Or maybe their retirement/401k got slaughtered in the "downturn".

 

[NightHawkeye]

Or maybe their retirement/401k got slaughtered in the "downturn".

Mea culpa ... oh wait, can I blame someone else?

BTW, not to worry ... Senator Tom Harkin (Democrat, Iowa) has legislation for that. Senator Harkin proposes to nationalize IRA's and 401k's. Then it won't be your problem any more ... Social Security won't be a problem any more either (your country thanks you ) ... and you'll be more dependent than ever on government. Doesn't that sound great? Only problem is that Harkin's bill has been tabled in committee ... for now ...

 

[conamer]

Mea culpa ... oh wait, can I blame someone else?

BTW, not to worry ... Senator Tom Harkin (Democrat, Iowa) has legislation for that. Senator Harkin proposes to nationalize IRA's and 401k's. Then it won't be your problem any more ... Social Security won't be a problem any more either (your country thanks you ) ... and you'll be more dependent than ever on government. Doesn't that sound great? Only problem is that Harkin's bill has been tabled in committee ... for now ...

I know! The way they run the Postal Service is great too or AmTrac, or Social Security etc., heck they do it all so well. ObamaRation is going to be the BEST!

 

[stamperben]

I know! The way they run the Postal Service is great too or AmTrac, or Social Security etc., heck they do it all so well. ObamaRation is going to be the BEST!

It wasn't Obama who made the USPS have to fund retirees health care two generations into the future.

 

[conamer]

It wasn't Obama who made the USPS have to fund retirees health care two generations into the future.

Nothing is his fault. The economy is worse than they thought, it's crazy.

 

[Wolseley]

Easy solution: cut Obama's and Congress' pay to make up for the difference.

 

[stamperben]

Nothing is his fault. The economy is worse than they thought, it's crazy.

Of course it's crazy for Congress to demand that the best run government agency that was actually doing well and making money do what they see will bankrupt it, all in an attempt to break a union and hopefully privatize the delivery of the mail.

 

[HalfoffSale]

Wait, I'm confused here. A few months back when there was talk of changing the student loan policies, it was nothing but "they should have thought of that before they majored in underwater basket weaving! PERSONAL RESPONSIBILITY!"

Now that it's effecting older people trying to do right for their kids and let them become skilled labor, it's suddenly a huge problem and how dare Obama didn't fix it?

Are you guys even trying anymore?

 

[NightHawkeye]

Easy solution: cut Obama's and Congress' pay to make up for the difference.

LOL ... We have a winner!

 

[dogs4thewin]

Horrible idea.

We should fund higher education through tax revenues so no one will ever have to pay student loans back. It will keep stuff like this from happening in the future.

They do in part, that is why public schools are cheaper than private ones. However, since higher education is optional, I am in college if I were to drop out Monday nothing would happen (since I am beyond required attendance. Also what about people who for whatever reason choose to go PRIVATE. That is sometimes one's only option, if they want say a ministry degree because the public schools can not favor one faith overr another as in my case. Also, sometimes people will choose private for the smaller class sizes or other programs offered ( even though they KNOW it will cost more) It is already done that way just not entirely as it is for secondary schools. Now, Georgia does offer SOME money to those local students who choose to go private, because they know that their public schools would have a hard time holding them all after adding out- of state and international students to the mix. However we do not get near as much as the public school students and the school gets NOTHING. That is the price a school and their students pay for choosing the private route where the school may control more and the students get certain benefits they would not at a public school.

 

[Nurbz]

Because public education works so well.

@The OP.

If you borrow money, pay it back.

*shrug*

I don't have a lot of sympathy here.

It did before people who wanted to dismantle it began to be placed in charge of the DOE

The countries that see education as an investment into their nations are the ones beating the US students in all subjects

 

[AceHero]

I know! The way they run the Postal Service is great too or AmTrac, or Social Security etc., heck they do it all so well. ObamaRation is going to be the BEST!

Amtrak was created in 1971, under Richard Nixon, a Republican president. The highways receive roughly the same amount in a year that Amtrak has received in its entire history. It's vastly underfunded to provide decent passenger rail service for a nation of our geographical size. And to think that last year the Republicans wanted to privatize the Northeast Corridor, the railroad's most profitable group of routes, even as ridership continues to climb.

 

[MachZer0]

For Unpaid College Loans, Feds Dock Social Security - SmartMoney.com

It should be wash since Obama promised Grandma that she would have to pay federal income taxes. So the amount saved on taxes should cover the amount withheld for the loan payments, right? Obama did keep that promise didn't he?