A boomer who can't afford to retire is facing a big money dilemma: Start paying a $1,414 student-loan bill or lose part of his paycheck

In May 2023, President Trump reinstated collections on defaulted student loans after a five-year hiatus. James Southern, a 63-year-old struggling borrower, is confronted with a $1,414 payment he cannot afford, risking wage garnishment and loss of federal benefits. With student loans entering default after 270 days without payment, many borrowers like Southern are anxious as collections resume. The Education Department has informed thousands of borrowers that federal benefits will be withheld starting in June, while a recent House hearing revealed $100 million has been collected from delinquent borrowers since the restart.

There will be no retirement. I'll die on the job. Even if I were at my full retirement age, they'd garnish the Social Security, so I'm still going to have to work in order to survive.

According to a bill statement reviewed by Business Insider, his servicer suggested he put forth $9,942 to make his account current, or he could make a payment of $1,414.71 to start chipping away at his delinquent student-loan balance.

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