The U.S. government has waged a multi-front war on aging Americans. As of this year, they’ve resumed garnishing Social Security benefits for unpaid student loans. In 2023, the Department of Education reinstated “involuntary collections,” affecting a significant number of seniors who are already grappling with financial hardships. This policy has a big impact on folks like Christine Farro. Because Sylvia has fallen behind on payments, her student loans have ballooned to $250,000 due to accruing interest over the years.
Now, the whole nation is still living with the impacts of skyrocketing inflation and extreme economic uncertainty. According to a January report from the Consumer Financial Protection Bureau (CFPB), nearly 452,000 people ages 62 and older are in default on student loans. Americans aged 60 and older now hold roughly $125 billion in student debt. This level represents a historic six-times increase from just 20 years ago. This trend raises deep alarm for the economic security of older Americans. To make matters worse, federal law only protects $750 of their Social Security benefits from being garnished.
Christine Farro’s experience is a perfect picture of what so many seniors are going through. While she has devoted her life to public service, she is now trapped under the weight of her student debt.
“I worked ridiculous hours. I worked weekends and nights. But I could never pay it off.” – Christine Farro
In the meantime, Farro and her husband, who’s been on disability for over two decades, have moved to living on credit cards. We’re talking about basic needs and services even, like healthcare for their pets. Her financial limitations have made it difficult for her to purchase birthday gifts for her grandchildren. They have further caused her to cancel critical veterinary checkups.
The Biden administration said it would like to raise the income level that can be garnished. They highlighted the need to more equitably address the growing issue of senior student debt. As policies are turned in the opposite direction toward return to more aggressive collection practices, people like Debbie McIntyre get caught in the crosshairs.
“I don’t know what more I can do,” McIntyre expressed, reflecting the frustration many feel in light of their financial struggles. She mournfully predicted, “I’ll never dig out of this hole.” The burden and stress of her student debt is palpable as she continues her work with adult education.
Linda Hilton, a 76-year-old retired office worker who has previously been subject to garnishment. Now, she is preparing for its return. She expressed that facing these economic pressures will prevent her from living life to the fullest.
“There won’t be any travel. There won’t be any frills.” – Linda Hilton
In response to these issues, Sarah Sattelmeyer from the New America think tank made an alarming point.
“We’re basically providing people with federal benefits with one hand and taking them away with another.”
This purposive understanding leads to a disturbing paradox in the current government-state: loopholes in government assistance are met with brutal debt-collection state. Randall Countryman, who’s seen these cycles before, noted how generational this problem is.
“What’s a young person’s problem today is an old person’s problem tomorrow.”
These policies have a ripple effect beyond just one person’s experience. Even more concerning, they signal a larger economic challenge that every state in the country now faces. Education Secretary Linda McMahon emphasized the importance of addressing these issues for both individual financial health and the nation’s economic outlook.
As the cost of student loan debt accumulates across our nation, older Americans are put under further strain. Christine Farro would love to retire, so she can afford to write historical fiction. In reality though, financial commitments continue to have Tori feeling stuck. She writes about the complexities in finding solutions to debt that has continued to pile up.
They told us, ‘Just go to a less expensive state,’” she remembered. This kind of advice is ultimately impossible for seniors deeply rooted in their communities with barriers that make moving untenable.
As this weird saga continues to unfold, we’re learning again and again just how student loan policy affects us all. The impacts extend well beyond the individual borrowers. Each one raises profound questions about what we value as a nation in terms of education and how we care for an older society. Student debt and Social Security garnishment are interconnected issues that require immediate and comprehensive action. It’s time for policymakers to reconsider what we’ve been doing and look for kinder, more humane approaches.
