As the U.S. government resumes garnishing Social Security checks for defaulted student loans, older Americans are disproportionately affected. Many retirees, like Christine Farro, face financial hardship due to decades-old debts that have ballooned due to interest and penalties. Despite efforts to consolidate loans and make payments during the pandemic pause, many borrowers remain unable to repay their debts. Approximately 452,000 individuals aged 62 and older are in default, with the total debt held by those 60 and older reaching $125 billion. Critics argue that current policies fail to address the unique challenges faced by older borrowers, potentially leading to severe consequences such as homelessness or reduced living standards.
— new from AP News
