US social security for seniors squeezed by student debt, they now risk losing benefits

“Offsetting Social Security benefits can push beneficiaries closer to—or even into—poverty,” the letter says

A significant number of seniors in United States are having their Social Security benefits reduced because they defaulted on student loan payments. This primarily affects those who rely on Social Security as their main source of income. The population of Americans aged 60 years and older with student debt has skyrocketed in recent years. The total debt burden amounts to over $125 billion. This has led to more Social Security beneficiaries experiencing benefit reductions due to student loan defaults.

FILE PHOTO: Supporters of U.S. President Joe Biden's s plans for student debt relief march near the White House after a U.S. Supreme Court decision blocking the president's plan to cancel $430 billion in student loan debt, in Washington, U.S. June 30, 2023. REUTERS/Leah Millis/File Photo(REUTERS)

Withholding social security payments can push beneficiaries closer to or into poverty. Much of the money collected goes toward fees and interests rather than reducing the principal amount owed.

Sen. Elizabeth Warren, among other democratic lawmakers, is urging federal agencies to halt the practice of offsetting Social Security benefits for student loan payments. They argue it undermines the programme’s purpose of providing economic security to every American.

Warren and 30 others sent out a letter at 7 p.m. on Thursday. On Wednesday morning, the Social Security Administration and Department of Education acknowledged they had received the letter. The letter calls for a briefing with the leaders of three federal agencies involved in gathering funds: the Social Security Administration, Treasury Department, and Education Department, by April 2.

“Offsetting Social Security benefits can push beneficiaries closer to—or even into—poverty,” the letter says. The letter writers propose that the exemption of Social Security retirement, survivor, and disability payments from offsets relating to student loans is the solution.

“We should eliminate as much student debt as we can for everyone, but especially for those who have spent decades of their lives working to pay it off,”said Rep. Adam Schiff, D-Calif. “This bill would ensure that instead of triaging their benefits, seniors and disabled individuals can focus more on their health, their families, and thriving in their best years.”

Senators who have signed onto the letter include Ron Wyden (D-Wyo.), Richard Blumenthal (D-Conn.), Laphonza Butler (D-Calif.), Mazie Hirono (D-Hawai’i), Edward J. Markey (D-Mass.), Jeff Merkley (D-Ore.), Alex Padilla (D-Calif.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawai’i), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.). Representatives include Ayanna Pressley (D-Mass.), Raúl Grijalva (D-Ariz.), John Larson (D-Conn.), Alma Adams (D-N.C.), Becca Balint (D-Vt.), Jamaal Bowman (D-N.Y.), Cori Bush (D-Mo.), Danny Davis (D-Ill.), Robert Garcia (D-Calif.), Sheila Jackson Lee (D-Tex.), Pramila Jayapal (D-Wash.), Doris Matsui (D-Calif.), James McGovern (D-Mass.), Jerrold Nadler (D-N.Y.), Alexandria Ocasio-Cortez (D-N.Y.), Bill Pascrell (D-N.J.), Janice Schakowsky (D-Ill.), Grace Napolitano (D-Calif) and Frederica Wilson (D-Fla.).