At the start of the COVID-19 pandemic, ED paused collections on defaulted federal student loans. This year, collections will resume. Almost 6 million student loan borrowers with loans in default will again face ED’s forced collection of their tax refunds, wages, and Social Security benefits. An estimated 452,000 borrowers aged 62 and older with defaulted loans who are likely receiving Social Security benefits may face forced collections.
The report’s findings suggest that ED’s forced collections of Social Security benefits increasingly interfere with Social Security’s longstanding purpose of protecting its beneficiaries from poverty and financial instability.
Consumers can submit complaints about problems with student loans and debt collection by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
If you have questions about this report or its work on behalf of older Americans, please contact us at CFPB_OlderAmericans@cfpb.gov.
