My Student Loans are in Deferment But Will They Lower My Social Security Payments?


Dear Steve,

I have unsubsidized student loans as I returned to school as a non traditional student. I am 58, married, and not employed. The loans are in deferment right now.

Will this lower my social security benefits when I do require if the loans are not paid? Will it have a negative impact on my husbands?



Dear Joanne,

Well you might as well deal with these now. Deferment is just going to grow the balance without any benefit.

Put your federal student loans into a new Direct Loan to consolidate them. Then option to repay them using one of the income driven repayment programs. I would suggest the IBR or PAYE options.

While your payment will be as low as $0 per month it will eventually lead to forgiveness after 20 years. And like deferment, your balances will grow but at least it can lead to something good.

On your current path, when you use up your deferment and then have to start making payments, if you default it can eventually lead to an Administrative Wage Garnishment and the garnishment of Social Security benefits. There is no reason to let it come to this.

If you just take a little action now you can avoid the worst consequences.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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