In recent years, there has been a lot of controversy surrounding loans given to college students in Louisiana and throughout the nation. Many students say lenders took advantage of them because they were supposedly qualified for loans they had absolutely no means to repay. Thousands of students have since graduated from college and face urgent need for debt relief.
The government says it is aware of the problem and is doing what it can to find a way to help. Newly proposed legislation pending before the U.S. Congress would provide a way for many to obtain debt forgiveness regarding some student loans. The program would work through an exchange process where those receiving college loan debt relief would agree to delay taking Social Security retirement benefits.
The maximum amount of loan credit the new law would allow is just over $40,000. Basically, for every month of delay in taking Social Security retirement benefits, a student loan debtor would receive a $550 debt relief credit. Reportedly, student loan debt is said to be $1.3 trillion.
The Social Security Administration estimates that the proposed student debt relief program would boost SSA funds by some $700 billion. Many think the exchange is a great idea since the SSA is projected to experience a shortfall of a whopping $11.4 trillion by 2090. Time will tell if the proposed legislation is enacted into law; in the meantime, students or others in Louisiana in need of debt relief guidance may benefit by exploring their options by consulting with an experienced attorney.
Source: studentloans.net, “Congress to Consider Student Debt Relief Proposal at Expense of Social Security,” Drew Cloud, Jan. 9, 2018