Trump Default Students Cuts Social Security Benefits on Loan

US Education Department is stopping its plan to garnish people Social security benefits If they have missed themselves Student loanA spokesman of the agency tells CNBC.

Education Department spokesman Ellen Cast said, “The Trump administration is committed to protecting social security recipients, who rely on a certain income.”

There is a sudden change in development policy Administration,

Trump administration Announced On April 21, it will resume collection activity on the country's $ 1.6 trillion student loan portfolio. For about half a decade, the government did not go after those who fell behind as part of the policies of the Kovid-era.

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The federal government has extraordinary collection powers on its student loan and it can confiscate borrowers' Tax – deduction, Salary And Social security retirement And disability benefits. Social security recipients can reduce their check by 15% to return their default student loan.

According to the Consumer Financial Security Bureau, more than 450,000 federal students loan borrowers are 62 years old and older, who are default on their federal student loans and are likely to get social security benefits.

The administration gives the old students to the older borrowers, who have given more time on their debt to achieve the present and to escape. Check a low profit line,

Carolina Rodriguez, director of the Education Loan Consumer Assistance Program in New York, recently told the CNBC that she was worried about the results of re -introduced collections on particularly retired people.

Rodriguez said in an April 1 interview, “Losing a part of their social security benefits to repay the student loan may not mean enough for food, transport for medical appointments or other basic requirements.”