Urgent Social Security alert in the US: You could lose all this money

Thousands of retirees and people with disabilities in the United States face a new financial risk. The partial loss of their Social Security benefits due to unpaid student loan debts.

Very soon, the government will resume the practice of garnishing up to 15% of monthly Social Security payments from those who are in default on their federal student loans.

Government and Social Security stand firm: you could lose a lot of money

This measure, reinstated under Donald Trump's administration, reduces the minimum protected income threshold to $750 per month. A figure established in 1996 and that hasn't been adjusted for inflation since then.

This means that, after the garnishment, beneficiaries could be left with only $750 a month. An amount that is below the current poverty threshold for people over 65 years old.

Reactions haven't been long in coming. Many affected, especially older adults who rely exclusively on Social Security, express their concern. All because they can't cover basic needs like food, medication, and housing.

The U.S. government defends the measure: watch out for student loans

According to reports, the average annual reduction in benefits due to these garnishments is approximately $2,500. Meanwhile, the government defends the measure as a way to ensure financial responsibility and recover loaned public funds.

However, critics argue that this policy disproportionately punishes vulnerable people who have already paid multiple times the original amount of their loans due to accumulated interest and fees.

In response to this situation, some lawmakers have proposed laws to protect Social Security benefits from garnishments related to student loan debts. Nonetheless, to date, these proposals haven't been approved. The government keeps a firm stance on the enforcement of these collection measures.

Beneficiaries must stay informed in a timely manner: it's for your own good

It is crucial that Social Security beneficiaries are informed about this risk and seek financial or legal advice if they face difficulties with student loans. There are loan rehabilitation programs and income-based repayment plans that could offer relief and prevent future garnishments.

The resumption of garnishments for student loan debts represents a challenge for many, especially for those in economically vulnerable situations. The combination of strict government policies and the lack of adjustments in protection thresholds raises serious concerns about the financial security of retirees and people with disabilities in the country.