Student loan debt has become a significant financial burden for many Americans that will likely follow them into retirement. Concerns have been expressed by retirees and those who are close to retirement over the possibility of Social Security benefits being deducted to pay off college loans. The “Protection of Social Security Benefits Restoration Act” has been introduced in the Senate by U.S. Sen. Ron Wyden (D-Ore.) to address this problem head-on.
Sen. Ron Wyden Introduced The Bill To Help Americans Who Had Their Social Security Benefits Withheld (Photo: jandils)
Why Sen. Ron Wyden Introduced The “Protection Of Social Security Benefits Restoration Act” In The Senate?
According to Go BankingRates, Sen. Ron Wyden put out the “Protection of Social Security Benefits Restoration Act” in an effort to address and end the practice of garnishing Social Security benefits to pay off student loans. The proposed legislation would prevent Social Security benefits from being taken in order to pay back college loans.
According to KTVZ, Sen. Ron Wyden stated that it was “plain wrong” to deprive seniors of the Social Security benefits they had accumulated over a lifetime of work because of the mounting student loan debt.
“Congress needs to act now to defend seniors’ rights to the Social Security benefits they have worked so hard to earn with each paycheck. It is for this reason that I’m delighted to present legislation that strengthens Social Security benefit protections and enables seniors in Oregon and across the country to retire with the dignity they merit.” Sen. Ron Wyden added.
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Sen. Ron Wyden Aims To Help Americans Who Had Their Social Security Benefits Withheld Because They Were Unable To Pay Their Student Loans
According to a report from the Government Accountability Office (GAO), at least 114,000 Americans have had their Social Security benefits withheld because they were unable to pay their student loan. Additionally, it was discovered that between 2002 and 2016, the government took Social Security benefits from more than five times as many seniors and persons with disabilities, plunging many of them into poverty.
The number of debtors 60 and older has surged six-fold since 2004, while their outstanding debt has increased 19-fold, according to the New America report. 3.5 million Americans aged 60 and older are currently carrying over $125 billion in student loan debt.
Although the bill is still in the legislative process, its approval might provide many retirees and those who are about to retire with relief and more financial security in their later years. The legislation’s chances of passing are still uncertain.
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