newjerseynewsroom.com

BY PAM LOBLEY

NEWJERSEYNEWSROOM.COM

NOW THAT’S FUNNY

A number of Social Security recipients have had their checks reduced by the government because they still owe money from their student loans.

People, if you haven’t repaid your student loans by the time you’ve retired and are receiving social security, well, maybe you borrowed too much.

According to Smartmoney.com, about 115,000 seniors have had their checks reduced because of unpaid federal student loans. That compares to about 6 cases in the year 2000.

The image of Grandpa working all those years and partying instead of paying down his loans is pretty funny, but not accurate. Most of these loans were taken by family members to pay for a younger person’s education. So the parents take out a loan for their children’s education, and they assume the financial liability to give their kids a running start in life.

This is admirable, and my parents did that for me. However, I think I graduated with four or five thousand dollars in loans. This spring, 66 percent of students graduated with over $28,000 in student debt. How on earth are you going to pay that back when you are in your fifties and getting ready for retirement, not to mention paying for the increasing health expenses that come with age?

It’s easy to see how this happened. Tuition and fees for college has tripled in the last 20 years. Why so expensive? Well, as a frame of reference, Futureofcapitalism.com cites soaring salaries: it points out that two married Harvard law professors, Elizabeth Warren and Bruce Mann, reported income totaling $688,974 in 2008. I bet they’re not worried about retirement.

Even if the kids want to help out and repay their loans, they have their own money problems. In many cases those expensive degrees can’t even get them a good paying job. Carrying that debt is a huge burden: Businessweek.com reports that many graduates are virtually shut out of the housing market because their student debt is so high they can’t qualify for a mortgage.

I feel bad for the kids, but I feel worse for the indebted retirees, who were suckered into believing that any amount of money is OK to borrow as long as it’s for college. They need a way to pay back this money. How about a work/study program, where they help out on campus by being a lunch lady or private tutor? They could teach money-saving life skills, like how to do your own oil changes or manicures.

They could chaperone at dances and mixers. They could offer seminars in how to drink responsibly and still show up for work in the morning.

Maybe there could be a program where they go into schools and talk to the kids about the dangers of borrowing … we would call it Scared Solvent.

I do agree that their Social Security should be docked to repay these loans — our government needs the money. They need the money because … well, they keep borrowing to pay for stuff they can’t afford.

Hm.

Pam Lobley writes the “Now That’s Funny” column. Check out her blog: Better Living Through Chaos! Follow her on Twitter @plobley.

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