{"id":530011,"date":"2022-12-21T19:56:00","date_gmt":"2022-12-21T16:56:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/encore-unpaid-student-loans-can-impact-social-security-benefits\/"},"modified":"2022-12-21T19:56:00","modified_gmt":"2022-12-21T16:56:00","slug":"encore-unpaid-student-loans-can-impact-social-security-benefits","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/encore-unpaid-student-loans-can-impact-social-security-benefits\/","title":{"rendered":"#Encore: Unpaid student loans can impact Social Security benefits"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ec5f75208c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ec5f75208c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/encore-unpaid-student-loans-can-impact-social-security-benefits\/#%E2%80%9CEncore_Unpaid_student_loans_can_impact_Social_Security_benefits%E2%80%9D\" >&#8220;Encore: Unpaid student loans can impact Social Security benefits&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/encore-unpaid-student-loans-can-impact-social-security-benefits\/#The_withholding_could_be_particularly_serious_for_Black_retirees\" >The withholding could be particularly serious for Black retirees<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/encore-unpaid-student-loans-can-impact-social-security-benefits\/#Alicia_H_Munnell\" >Alicia H. Munnell<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CEncore_Unpaid_student_loans_can_impact_Social_Security_benefits%E2%80%9D\"><\/span>&#8220;Encore: Unpaid student loans can impact Social Security benefits&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_withholding_could_be_particularly_serious_for_Black_retirees\"><\/span>\n  The withholding could be particularly serious for Black retirees<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001497353\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001497353\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       My colleagues, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/crr.bc.edu\/about-us\/people\/gal-wettstein\/\" class=\"icon none\">Gal Wettstein<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/crr.bc.edu\/about-us\/people\/bc-crr_bios\/siyan-liu\/\" class=\"icon none\">Siyan Liu<\/a>, just completed <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/crr.bc.edu\/working-papers\/what-is-the-risk-to-oasi-benefits-from-unpaid-student-loans\/\" class=\"icon none\">a study<\/a> using the Federal Reserve\u2019s <em>Survey of Consumer Finances<\/em> to explore how delinquent student loans could lead to the withholding of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security benefits, which could disproportionately harm disadvantaged groups. Gal and Siyan also looked at the potential impact of President Biden\u2019s debt relief proposal.\u00a0<\/p>\n<p> <strong>Read:<\/strong>\u00a0Biden administration extends pause on student-loan payments as debt-forgiveness plan remains mired in litigation<\/p>\n<div class=\"paywall\">\n       While the overall magnitude of student debt held by those 65+ is not large, the burden has been growing rapidly and is expected to be substantially higher for future beneficiaries (see Figure 1). And both current and future Black beneficiaries are more likely to hold student debt than white ones. The average loan balance, among all these borrowers, is more than $30,000.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:73.71428571428571%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-689805?width=540&amp;size=1.357370095440085 540w, https:\/\/images.mktw.net\/im-689805?width=620&amp;size=1.357370095440085 620w, https:\/\/images.mktw.net\/im-689805?width=639&amp;size=1.357370095440085 639w, https:\/\/images.mktw.net\/im-689805?width=700&amp;size=1.357370095440085 700w, https:\/\/images.mktw.net\/im-689805?width=700&amp;size=1.357370095440085&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-689805?width=700&amp;size=1.357370095440085&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-689805?width=700&amp;size=1.357370095440085&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-689805?width=700&amp;height=516\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       The story is similar for student loan delinquency. On the one hand, only a few current Social Security beneficiaries are not making loan payments and thus face the possibility of benefit withholding (see Figure 2). On the other hand, delinquency rates \u2014 which are expressed here as a share of the total beneficiary population \u2014 are estimated to be higher among future beneficiaries and concentrated among Black borrowers in both samples.\u00a0<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:73.28571428571429%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-689806?width=540&amp;size=1.3646055437100213 540w, https:\/\/images.mktw.net\/im-689806?width=620&amp;size=1.3646055437100213 620w, https:\/\/images.mktw.net\/im-689806?width=639&amp;size=1.3646055437100213 639w, https:\/\/images.mktw.net\/im-689806?width=700&amp;size=1.3646055437100213 700w, https:\/\/images.mktw.net\/im-689806?width=700&amp;size=1.3646055437100213&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-689806?width=700&amp;size=1.3646055437100213&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-689806?width=700&amp;size=1.3646055437100213&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-689806?width=700&amp;height=513\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       Technically, benefit offsets occur after a student loan has been delinquent for 425 days and the loan holder fails to restart repayment after being notified by the Department of Education. Due to data limitations, the authors assume benefit offsets for all delinquent loan holders. After identifying which loan holders are at risk, they then calculate the maximum amount of benefits that could be withheld for individuals with the highest Social Security benefits in each household.<\/p>\n<p><strong>Read: <\/strong>How can we solve the Social Security problem?<\/p>\n<p>The results show that, on average, delinquent borrowers are expected to face about a $2,500 reduction in annual Social Security benefits, representing 4% to 6% of household income (see Table 1). Putting these numbers into context, the amount of withheld benefits could roughly pay off the average per capita credit card balance.\u00a0<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:36.285714285714285%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-689807?width=540&amp;size=2.752688172043011 540w, https:\/\/images.mktw.net\/im-689807?width=620&amp;size=2.752688172043011 620w, https:\/\/images.mktw.net\/im-689807?width=639&amp;size=2.752688172043011 639w, https:\/\/images.mktw.net\/im-689807?width=700&amp;size=2.752688172043011 700w, https:\/\/images.mktw.net\/im-689807?width=700&amp;size=2.752688172043011&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-689807?width=700&amp;size=2.752688172043011&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-689807?width=700&amp;size=2.752688172043011&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-689807?width=700&amp;height=254\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       Of course, President Biden has put forth a plan for student debt relief. The analysis focuses on what would have h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened to student loan holding, balances, and delinquency rates if the direct debt forgiveness had been available to borrowers between 2010 and 2019. Specifically, the authors cancel $10,000 in debt for borrowers who meet the income eligibility criterion; and they estimate which borrowers could have been Pell Grant recipients, who receive an additional $10,000 in debt forgiveness. In terms of wiping out student debt completely, the relief plan would have the greatest impact on Black borrowers, reducing the share with debt by 10 percentage points\u2014from 22% to 12% (see Figure 3).\u00a0<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:73.42857142857143%;\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-689808?width=540&amp;size=1.3617021276595744 540w, https:\/\/images.mktw.net\/im-689808?width=620&amp;size=1.3617021276595744 620w, https:\/\/images.mktw.net\/im-689808?width=639&amp;size=1.3617021276595744 639w, https:\/\/images.mktw.net\/im-689808?width=700&amp;size=1.3617021276595744 700w, https:\/\/images.mktw.net\/im-689808?width=700&amp;size=1.3617021276595744&amp;pixel_ratio=1.5 1050w, https:\/\/images.mktw.net\/im-689808?width=700&amp;size=1.3617021276595744&amp;pixel_ratio=2 1400w, https:\/\/images.mktw.net\/im-689808?width=700&amp;size=1.3617021276595744&amp;pixel_ratio=3 2100w\" sizes=\"(max-width: 639px) 100vw, (max-width: 979px) 620px, (max-width: 1299px) 540px, 700px\" src=\"https:\/\/images.mktw.net\/im-689808?width=700&amp;height=514\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       In short, student loans are not a phenomenon limited to the young. An increasing number of older people are also carrying a substantial debt burden. This burden could ultimately reduce the Social Security benefits of those who default. It is a problem that needs to be monitored.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Alicia H. Munnell\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/alicia-h-munnell\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:contributors@marketwatch.com\",\"text\":\"contributors@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Alicia_H_Munnell\"><\/span>Alicia H. Munnell<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"5_MW\" author-name=\"Alicia H. Munnell\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Funpaid-student-loans-can-impact-social-security-benefits-11671583237%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-716D-90952A15E6E4%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Encore: Unpaid student loans can impact Social Security benefits&#8221; The withholding could be particularly serious for Black retirees My colleagues, Gal Wettstein and Siyan Liu, just completed a study using the Federal Reserve\u2019s Survey of Consumer Finances to explore how delinquent student loans could lead to the withholding of Social Security benefits, which could disproportionately&#8230;<\/p>\n","protected":false},"author":1,"featured_media":530012,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-689810\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-530011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/530011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=530011"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/530011\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/530012"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=530011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=530011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=530011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}