The federal government is increasingly taking money out of Americans' Social Security checks to recover millions in unpaid student debt, a trend set to accelerate as more Baby Boomers retire.
Overall, about seven million Americans age 50 and older owed about $205 billion in federal student debt last year. About 1 in 3 were in default, raising the likelihood that garnishments will increase as more boomer retire.
The report showed garnishments left thousands with Social Security checks below the poverty line. Most Social Security recipients rely on their checks as their primary source of income, other research shows.