Many individuals are not aware that Social Security benefits can be used to pay student loans that are in default. The Social Security Administration (SSA) can take up to 15% of a persons benefits to pay off defaulted student loans; however, it cannot take more than $750 a month or $9,000 a year to pay for defaulted student loans.
For further details see the Fox Business article at https://www.foxbusiness.com/personal-finance/student-loans-default-diminish-social-security-benefits
Regrettably these defaults often impact retired parents who have taken out student loans for their children or Parent Plus Loans.
Jim Shenwick Esq. 212 541 6224 jshenwick@gmail.com
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