Introduced in the House of Representatives on December 7, 2017, by Rep. Thomas A. Garret, Jr. (R-Va.), the Student Security Act of 2017 aims to provide loan forgiveness to borrowers of federal student loans who agree to delay eligibility to collect Social Security benefits. In its current form, the Act would grant $550 in student loan forgiveness for each month a student debtor was willing to raise his or her full retirement age, or $6,600 per year. It set its statutory maximum level of student loan forgiveness at $40,150, the result of forgoing six years and one month of Social Security benefits. Though not particularly large, this cap would nonetheless allow 90% of borrowers to fully erase their debt. The Act received a boost from the National Review in an article published on March 12 and penned by Garret’s former legislative director.
For its part, the Social Security Administration’s Office of the Chief Actuary projects that such a program would save $725 billion over 75 years. In the absence of any change to its eligibility or funding structure, the Social Security Board of Trustees announced the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance Trust Funds will be wholly depleted by 2034.
The bill’s progress can be tracked here.