Christine Farro, a 73-year-old retiree, is struggling to manage her finances as the Trump administration resumes collections on defaulted student loans. This renewed scrutiny places many older Americans, like Farro, at risk of having their Social Security benefits garnished. Farro's debts, dating back decades, have only increased due to accumulated interest, leading to overwhelming financial stress. After years of paused payments during the pandemic, the situation is set to worsen as involuntary collections are reintroduced, potentially affecting essential retirement benefits and further complicating their financial stability.
I worked ridiculous hours. I worked weekends and nights. But I could never pay it off, says Farro, a retired child welfare worker in Santa Ynez, California.
Around 2008, when she consolidated her loans, she was paying $1,000 a month, but years of missed payments and piled-on interest meant she was barely putting a dent in a bill that had ballooned to $250,000.
Farro previously had her Social Security garnished and expects it to restart, reflecting the impending financial burden on older Americans with student debt.
The Department of Education said it would restart involuntary collections by garnishing paychecks, tax refunds and Social Security retirement and disability benefits.
Collection
[
|
...
]