<p>Until his Social Security check arrived nearly $300 lighter last June, Eric Merklein, 67, had no idea that he was carrying outstanding student debt. Merklein eventually learned that the government was taking money from his Social Security payments to repay loans he took out roughly four decades ago; he had thought they were paid. Merklein was unemployed, and the garnishment amounted to one-sixth of his total monthly income.</p>
<p>Looks like ParentPlus loans too.</p>
<p>Do not trust government, do not take student loans. And for 4 decades ago, there were absolutely NO reasons under the sky to do so. Even now many companies are paying tuition. Way back, it was very common. Both my H. and I got paid our by various employers (I have changed several jobs while going to school) all the wasy thru MBA (which we did not even need in out positions, but decided to have ONLY because it was free, why not?). I do not trust anybody. They still may put something on us, who knows, but at least, we are not going to provoke it anyhow. </p>
<p>I’d like more information. The article doesn’t say when the government notified Mr. Merklein that he had outstanding debt. Did it just go ahead and dock his SS or did he have some warning? </p>
<p>The article states he wasn’t even sent a postcard. I can believe it, having worked in military finance.</p>
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<p>I can’t. Years ago, before the feds nationalized student loans, they were made and processed by outside vendors. Those vendors received a piece of the action from every outstanding dollar that they were able to collect. Many of the collectors were ruthless in their attempts to collect. (Indeed, one of the arguments for nationalizing the loan process.)</p>
<p>My guess is that the gentlemen moved several times and the collectors were unable to keep up with him.</p>
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<p>Probably true, for that one loan. But federal programs evolved over time, and they came with different names, and loan processors. (Remember back when consolidation was a big thing?)</p>
<p>Shame on Bloomberg for publishing this poorly researched and written story.</p>
<p>The other example given is a women who owes $40,000 that she didn’t pay back.</p>
<p>“They’re killing me,” Crotinger says, “I don’t know what to do about it. I figure I will be paying it off the rest of my life.”</p>
<p>. Crotinger’s only lifeline is the $40,000 in her late husband’s retirement account, but she hasn’t touched it.</p>
<p>“I am afraid to claim it because I’m afraid they’ll take it,” she says, referring to the government. She says she wouldn’t be able to forgive herself if the money didn’t make it to her four children. “It’s not much, but it would help the kids out,” she says.</p>
<p>She borrowed. She owes. Hasn’t paid it back. Doesn’t want to.</p>
<p>What the heck?</p>
<p>This doesn’t make any sense. If she dies won’t the estate settle all debts first anyways before the heirs get any money? And wouldn’t it be better to pay off the debt now before more interest and fees get added?</p>