Garnishing Social Security

[BlueRaiderFan]

In case you didn't realize it, they will garnish your social security if you find yourself unable to make your loan payment. Yes, there are deferments, but they have limits, and often the interest builds while deferment is in place. I'm certain I'll read all kinds of excuses as to why this is ok, or how she could have made her financial life bullet proof. It's too bad the rest of the world isn't perfect, like some of you guys. If interest rates were reasonable, she might be able to pay this off... Waiting on one of you to justify the high rate...I know you can do it. Why keep our citizens in debt? Profit, that's why. We should be charging zero or at most a small percentage to service the loan. This is greed, pure and simple.


Another challenge in retirement? Student loans

• An increasing number of Americans are lugging their student debt into retirement.
• In 2018, Americans over the age of 50 owed more than $260 billion in student debt, up from $36 billion in 2004, according to the Federal Reserve.
• Nearly 40 percent of borrowers aged 65 and older are in default, the Consumer Financial Protection Bureau found.

Annie Nova | @AnnieReporter
Published 15 Hours Ago Updated 11 Hours AgoCNBC.com

Source: Seraphina Galante
Seraphina Galante is 76. She owes nearly $40,000 in student loans.
In a few years, Seraphina Galante will be 80. And she'll still be paying off her student loans.

For a long time, she didn't tell anyone about her situation. But after the 76-year-old woman joined an advocacy group for borrowers, called Student Loan Justice, she realized she was not alone.

"It was amazing to find out that there are quite a number of seniors in this predicament," Galante said.

Indeed, Galante is one of 2.8 million people in the U.S. over the age of 60 with student debt, a number that has quadrupled from 700,000 in 2005 and continues to grow.

"It eats away at what folks are able to have for their basic necessities."-Persis Yu, director of the Student Loan Borrower Assistance
In 2018, Americans over the age of 50 owed more than $260 billion in student loans, up from $36 billion in





















https://www.cnbc.com/2018/11/14/mor...1F0nImqLPUZAayYqEEWycH8lWvyjbIbZs7umJQtiZ9dUs

 

[Blueraider_Mike]

Why don't you set up a gofundme page and help her out. I am being dead serious. I will help and contribute the moment you share the link. Its sad that someone at her age is dealing with this, I wish people would be more responsible. I am dealing with my 75 year old mom and her bad financial decisions. Maybe this woman has family that can assist her.

Meanwhile, I looked her up...I knew you wouldn't tell the full story. You left out this important nugget...

Who in their 50s thinks that it is wise to borrow money to go into social work? The interest rate isn't high, the problem is she has been paying only $200 a month on a $35,000 debt. 8% on unsecured debt is much better than credit cards.

The math doesn't work, ever, for anyone.

I am not sure of your point in starting this thread. She was completely irresponsible.


Forced to continue working
Galante returned to graduate school in her 50s to study social work and borrowed around $35,000. Even though she's made payments for nearly two decades, she owes nearly $40,000 because she's barely able to keep up with the interest on her debt, which grows quickly at 8 percent.

She is single and has a fraction of what her peers have saved for retirement, she said.

 

[BlueRaiderFan]

Ok, first of all, I posted a portion of the story, which is the rule of the forum on posting links. Secondly, if you think that GoFundMe is the solution to the issue that affects millions of our senior citizens, over 2 million in fact, then you are oversimplifying the issue, to say the least. Thirdly, I've known people that have gone to medical school in their fifties and washed out after two years. Once again you display your know it all arrogant attitude. Who's to say that it wasn't a good idea? Maybe going back to school in their fifties has worked for many people, and just not a few. I knew you would act like you knew all about her life and how she's a screw up because you would have done it differently and you are perfect.

 

[Blueraider_Mike]

Ok, first of all, I posted a portion of the story, which is the rule of the forum on paying links. Secondly, if you think that GoFundMe is the solution to the issue that affects millions of our senior citizens, over 2 million in fact, then you are oversimplifying the issue, to say the least. Thirdly, I've known people that have gone to medical school in their fifties and washed out after two years. Once again you display your know it all arrogant attitude. Who's to say that it wasn't a good idea? Maybe going back to school in their fifties has worked for many people, and just not a few. I knew you would act like you knew all about her life and how she's a screw up because you would have done it differently and you are perfect.

See there you go again, making stuff up that you think about what I believe (this is how you operate everytime you get challenged). You also said she had a high interest, that's not true. It was 8%, this is not high for an unsecured loan.

I don't know about her entire life. But I do know that social work doesn't pay well. I shared with you a few months ago with a young lady I am advising, she got her Masters in social work and make 30K per year. She has 50K in debt. It going to take her 15 years to clean this up. But she is only 25 and has time. But it just because she has time, doesn't mean she should have done this.

And if your in your 50s you should be very careful how you borrow money using an unsecured instrument knowing your only going to make a small income and knowing your career most likely will last for 15 more years, maybe more with good health. The fact that she had no savings only complicated the situation. So now she's has a debt she can't pay and she has no savings....in effect your saying its not her fault.

She may be a great person, but I do fault her. I also fault the institution that let her do this...but it would be politically incorrect to prevent someone from going into debt in their 50s. So, the system allows the money to be borrowed.

 

[BlueRaiderFan]

8% is high on loans that are used to educate our society. A better educated society is a more capable society. If you keep those people in debt did too long, you stifle the economy. Educating our society shouldn't involve profit because we all profit from their education. If you had the least but of vision, you could see this.

 

[Blueraider_Mike]

8% is high on loans that are used to educate our society. A better educated society is a more capable society. If you keep those people in debt did too long, you stifle the economy. Educating our society shouldn't involve profit because we all profit from their education. If you had the least but of vision, you could see this.

Average Personal Loan Interest Rates by Lender. Interest rates on unsecured personal loans typically range between 5% and 36%. Banks and credit unions will offer competitive rates, but some of the lowest you can find are from online lenders, especially those that cater to creditworthy borrowers.
Average Personal Loan Interest Rates for 2018 - ValuePenguin

https://www.valuepenguin.com/personal-loans/average-personal-loan-interest-rates
So 8% is not too bad.

How does the govt have "vision" if the individual people don't have "vision"? It is NOT society job to cover a 50 something year old woman's (who already has a degree) graduate degree for social work. When you in your 50s you don't take these kinds of risks.

Are you really advocating that society should cover people's graduate degrees?

The solution isn't for society to forgive her loan, her solution right now is for people like you to pool your money together and pay off her debt...I will help. Send me the link that you've created to help this woman and am all in.

 

[BlueRaiderFan]

I'm not advocating that society cover her graduate degree. What I am saying is that we all benefit from an educated society. It makes us more competitive around the globe. It allows our industry, etc, to excel and beat the competition. It allows us to develop better drugs, have better research in the sciences, better engineering etc. Why make it more difficult for people to go to school to further their education? Regardless of what private sector lenders charge, it would benefit us all to make access to education as inexpensive as possible. The government, and our society, would benefit more by making less profit so that more people could afford to earn degrees, and yes, even advanced degrees. As usual you are short sighted and miss the point. Like most conservatives, if not all, almost your entire focus is on profitability. It's a disease with you people.

 

[BlueRaiderFan]

Also, if you want tuition costs to once again adhere to inflationary rates, instead of them advancing at three times the rate of inflation, we will need to restore bankruptcy protections to student loans. If you don't like the government taking the hit, then they need to get out of the lending business. Besides, even when the bankruptcies were factored in back in the day, the government still made money because less than 1% of borrowers have fille for bankruptcy on their loans historically.

 

[Blueraider_Mike]

Your last two post have nothing to do with the story you shared, nothing.

You say we benefit from an educated society - I agree

You say why make it more difficult for people to go to school - I say we make it easy, and your story proves we make it easy - Pell Grants, TN Promise, TN Reconnect, etc, etc, etc - your problem you used a mid 50s woman who already had a degree and borrowed money in her 50s for a career that pays nothing.

You say that conservatives only care about profitability - I don't know where you picked that up, what I care about is personal responsibility and depending on where you are in life you have to understand the consequences of your decision because life doesn't go as you plan. What I have said is that the reason why our Govt is so screwed up is because the average american is in debt up as well - I personally choose a different path. AND, I was poor and paid my way through school without borrowing, it can be done its just harder in the short term.

You say the govt and society would gain by making less profit so that people could earn degrees - I'd say if education is too expensive its mainly the govts fault because they control the bulk of it and they subsidize it. And its societies fault because they keep voting for the same people that get elected that make the decisions. I could make a case that if everyone actually considered profit (cost of doing what we do and look at actual benefit, ROI) things would change.


You bring up inflation rates and interest rates and say in effect they should be the same or lower if we allowed student loans to be discharged through bankruptcy - I'd say your wrong. If we allowed people to file bankruptcy and discharge their loans then those that borrow would be charged HIGHER rates to cover the cost of those borrowing or in the least the taxpayer would have to cover it.

You say back in the day, the govt makes money when bankruptcies were allowed - Just to clarify, the Govt doesn't make money period on education. The Govt doesn't use the same accounting practices that private business use....I say all govt agencies should use fair market accounting practices so that we as a society can know the true cost of a program and if we as a society believe its worth the cost then so be it. Instead, the temptation is to always expand the programs.

Under FCRA accounting procedures, the federal student loan program will turn a small profit of $28 billion over the coming decade, according to CBO. But using fair-value accounting, which incorporates the full market risk of the loans, taxpayers will lose a whopping $183 billion over the same time period - see is la la land, these make a profit but in real life it loses billions.

WHY?

Because student loans are risky. They are unsecured. Student loans are especially susceptible to the risk that the economy could turn sour. During downturns, people are likely to prioritize making payments on rent and other necessities, since the negative consequences of missing a student loan payment are less immediate than those of failing to buy food. Loan repayment plans that allow borrowers to make payments as a share of their income also make the program more risky for taxpayers: a recession drags down incomes, which in turn reduces borrowers’ payments to the government.

I am all for helping subsidize those that want an education. I am not for people not being literate enough to not understand what they are signing up for. Right now the cost is too high, but the govt is the main driver of that cost. How can one graduate with a MASTERS degree and not understand risk or any degree - maybe we need to add personal finance to every program. I am getting off topic and this post is long.

 

[BlueRaiderFan]

People, the lenders are gaming the system and not just for people in their 50s. People of ALL ages are being kicked out of income based repayment plans for little or no reason. They are having HUGE fees added to their balance for going into default and I'm talking TENS OF THOUSANDS of dollars... And much more is going on. If you really want to know the truth about what's going on, go to Studentloanjustice.Org or join Student Loan Justice on Facebook. If you keep listening to people like Mike, you'll be misinformed. You see Mike likes to focus on anything but the point and the point is we are enslaving an entire generation, if not two generations, to a line of debt, not because they are dead beats, but largely because they are being lied to and manipulated. I've provided the information on where to go to educate yourselves. It's up to you to do it.


https://bloom.bg/2DJ5D24?fbclid=IwAR2Ed6zOQ48ztfXhvyJoEcQbEXXoXcfvD-qHvO_0YRNAfi24h52v_Ui5xrY

Outstanding Student Loan Debt Approaches $1.5 Trillion
By
Alexandre Tanzi
November 16, 2018, 2:32 PM EST

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Outstanding student loan debt increased by $37 billion in the third quarter and stood at $1.44 trillion as of September 30, 2018, according to newly released data from the Federal Reserve Bank of New York.



Key Insights

• 11.5% of student debt was 90+ days delinquent or in default in last

From my information elsewhere, it's closer to a 40% default rate.

 

[BlueRaiderFan]

Also, people like Mike are the first to decry a supposed $180 billion dollar loss, which I disagree with his numbers, but are the first to not bat an eye at several trillion dollars going to the war machine over the same time period.

 

[Blueraider_Mike]

Also, people like Mike are the first to decry a supposed $180 billion dollar loss, which I disagree with his numbers, but are the first to not bat an eye at several trillion dollars going to the war machine over the same time period.

The example I used is if the current system used the same accounting principles that other business use. Did you actually read what I wrote. You made some comment that the govt used to make money on these programs.

You constantly misrepresent me.

AGAIN the topic was the system was evil against a retired social worker whose SSI was going to be garnished because of her student loan debt. Now you've gone off the rails again.

Let me tell you something, if the student default rate is actually 40% - You just reinforced everything I believe about the program and everything "you think" I believe.

I have no problem making student debt discharged through bankruptcy. However, if we do this the cost to borrow money for school will rise - are you ok with that?

 

[Blueraider_Mike]

Just one more thing...where I have EVER supported the build up of the Military complex. I want you to search the archives here on this sight and then copy and post what you think I believe.

The only point I have ever made with you is military spending related to GDP and how we have compared over time. And what this means. And the truth that you can't get you mind around is that historically (even with the villain "military complex") we are spending less than our average based on our wealth.

 

[BlueRaiderFan]

Again, Mike, the historic bankruptcy rate on student loans is less than 1% . If the rates did go up, it wouldn't be by much.

 

[Blueraider_Mike]

Again, Mike, the historic default rate on student loans is less than 1% . If the rates did go up, it wouldn't be by much.

How does what you just said in this post equal what you said an hour ago...

Key Insights

• 11.5% of student debt was 90+ days delinquent or in default in last

From my information elsewhere, it's closer to a 40% default rate.

If the historical default rate is 1% and it goes to 40%, rates would go up and the program would shut down.

What argument are you making....

 

[BlueRaiderFan]

The historical BANKRUPTCY rate...Also, going back to school in your 50s is reasonable. Again, not everyone is perfect like you are, Mike.

 

[Blueraider_Mike]

The historical BANKRUPTCY rate...Also, going back to school in your 50s is reasonable. Again, not everyone is perfect like you are, Mike.

You didn't refute a single point I've made. Again, you refuse to look at the mistake you made for the woman you were using to try to make you point. And then, as your custom you try to critical of me, referring to me as perfect.

Going back to school in your 50s is reasonable, but borrowing 40,000 in your 50s to get into social work is stupid. If your 50 and have no savings it is WRONG to go into that amount of debt unless the income would cover the loan and improve your life. She had no chance with her personal decision. Its not personal, its just the truth. She had a degree, what she needed to do was work and prepare for the rest of her life. Graduate school is not a right.

Here is what you said about historical student loan bankruptcy rates Again, Mike, the historic bankruptcy rate on student loans is less than 1%

Then in the next retort - you say The historical BANKRUPTCY rate - make up your mind.

I don't know actual bankruptcy stats...but if only 1% of the populace files for bankruptcy why is 11-12% of the people borrowing defaulting on student loans? Or as you claim, 40% defaulting.

Why the difference?

Here is the default rate after 2 years form the different type of schools from mid 90s to 2012. The good news is the trend is going down...since 2012, I bet its even lower today due to the economy improving. These default rates seem to flow based on how the economy is doing.

 

[BlueRaiderFan]

Ok, let me rephrase the OP, MIKE; PEOPLE ARE GETTING S#IT ON, BECAUSE THE LOAN COMPANIES ARE GAMING THE SYSTEM. NO ONE SHOULD HAVE THEIR SOCIAL SECURITY GARNISHED... EVER.

 

[Blueraider_Mike]

Ok, let me rephrase the OP, MIKE; PEOPLE ARE GETTING S#IT ON, BECAUSE THE LOAN COMPANIES ARE GAMING THE SYSTEM. NO ONE SHOULD HAVE THEIR SOCIAL SECURITY GARNISHED... EVER.

Was that so hard...move your anger towards government, they set the rules.

You can also blame the schools who encourage the borrowing and sometimes don't point the borrowers in the right direction.

https://www.marketwatch.com/story/h...-and-hurt-borrowers-in-the-process-2018-04-27

 

[BlueRaiderFan]

Was it so hard for you to skip all the bull? Regardless of her personal choices, which by some opinions were reasonable, she should never have had her SS garnished, but you skipped right over that little nugget and went for the jugular, placing blame based on your personal opinion, rather than focusing on the point. A typical republitard move...

 

[Blueraider_Mike]

Was it so hard for you to skip all the bull? Regardless of her personal choices, which by some opinions were reasonable, she should never have had her SS garnished, but you skipped right over that little nugget and went for the jugular, placing blame based on your personal opinion, rather than focusing on the point. A typical republitard move...

Only...that's not what I did. What I said is that it was irresponsible for someone in their 50s to borrow $40K to go to graduate school in order to get into social work. I said the math doesn't work. Borrowing that much money to make a low income when you have no savings is not wise. How did she ever plan on saving for retirement...now she has no savings and still has the debt. How is society better off? She's not better off.

I also said it was irresponsible for the "system" to allow her to do this. I am sure she probable was not financially literate to understand the risks. So, no, under no circumstances was what she did reasonable.

 

[BlueRaiderFan]

That's your opinion, Mike. Your numbers. Your idea of what's a good idea and what's not. Instead of seeing the tragedy of garnishment of a person's SS, you chose to focus on what YOU thought was wrong with her decision. Judge much?

 

[BlueRaiderFan]