Millions of older adults who are behind on their student loans could soon receive a smaller Social Security benefit.
"When borrowers are in collections, on average their Social Security benefits are estimated to be reduced by $2,500 annually," the lawmakers wrote. "This can be a devastating blow to those who rely on Social Security as their primary source of income."That was the warning from Democratic lawmakers, including Sen. Elizabeth Warren, D-Mass., and Sen. Ron Wyden, D-Ore., in a recent letter to the Biden administration.on March 19.
However, the lawmakers wrote, "we are concerned that borrowers will face the extreme consequences associated with missed payments when protections expire in late 2024."The government's collection practices with student loan borrowers, including the garnishment of wages and Social Security benefits, is an area under review, a source familiar with its plans told CNBC.Outstanding student debt has been growing among older people. To that point, more than 3.