A growing number of Social Security recipients with unpaid college loans are receiving smaller checks, reports Smart Money.
From January through August 6, the government reduced the size of roughly 115,000 retirees’ Social Security checks on those grounds. That’s nearly double the pace of the department’s enforcement in 2011; it’s up from around 60,000 cases in all of 2007 and just 6 cases in 2000.
Up to 15 percent of the monthly check — almost $190 on average — is withheld.
Many of these retirees borrowed to help children or grandchildren go to college. “Other retirees took out federal loans when they returned to college in midlife, and a few are carrying debt from their own undergraduate or graduate-school years,” reports Smart Money.