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Decades Later, His Student Debt Came Back to Haunt Him Decades Later, His Student Debt Came Back to Haunt Him
(1 day later)
In the mid-1960s, Edward Durham briefly studied data processing at the Borough of Manhattan Community College. He dropped out after about a year and moved to Atlanta.In the mid-1960s, Edward Durham briefly studied data processing at the Borough of Manhattan Community College. He dropped out after about a year and moved to Atlanta.
He lived there for about a decade, working in sales and eventually opening a men’s wear store with a friend.He lived there for about a decade, working in sales and eventually opening a men’s wear store with a friend.
“I didn’t pursue my education,” he said. “I was just enjoying life.”“I didn’t pursue my education,” he said. “I was just enjoying life.”
Mr. Durham, 75, returned to New York in the early 1980s and took a second shot at his studies. He bounced among a handful of colleges, spending a few months or weeks at each one before he decided to drop out for good.Mr. Durham, 75, returned to New York in the early 1980s and took a second shot at his studies. He bounced among a handful of colleges, spending a few months or weeks at each one before he decided to drop out for good.
He had taken out a series of loans amounting to roughly $7,000 that he could not afford to pay off at the time. He assumed they fell under a statute of limitations and would eventually expire.He had taken out a series of loans amounting to roughly $7,000 that he could not afford to pay off at the time. He assumed they fell under a statute of limitations and would eventually expire.
Mr. Durham moved on with his life. He worked as a technician at a hospital in Manhattan and had a daughter, whom he raised on his own in Harlem.Mr. Durham moved on with his life. He worked as a technician at a hospital in Manhattan and had a daughter, whom he raised on his own in Harlem.
Several years later, he quit his job to look after his parents. His father had Alzheimer’s disease, and his mother would later learn she had breast cancer, followed by pneumonia. Mr. Durham was an only child. He did not want to leave their side.Several years later, he quit his job to look after his parents. His father had Alzheimer’s disease, and his mother would later learn she had breast cancer, followed by pneumonia. Mr. Durham was an only child. He did not want to leave their side.
“My parents did so much for me,” he said. “Gave me everything.”“My parents did so much for me,” he said. “Gave me everything.”
He was unemployed for about three years. After his parents died in the late 1990s, he worked as a bike messenger and then a cabdriver. He retired about a decade ago and, after he learned he had dementia, started receiving disability benefits.He was unemployed for about three years. After his parents died in the late 1990s, he worked as a bike messenger and then a cabdriver. He retired about a decade ago and, after he learned he had dementia, started receiving disability benefits.
Then, in 2016, Mr. Durham received a notice in the mail from the Treasury Department that stopped him in his tracks: His student loan debt had grown to $16,000 with interest, and the department would have to withhold 15 percent of his disability benefits to pay it off.Then, in 2016, Mr. Durham received a notice in the mail from the Treasury Department that stopped him in his tracks: His student loan debt had grown to $16,000 with interest, and the department would have to withhold 15 percent of his disability benefits to pay it off.
Mr. Durham had never been contacted about the loans until he received that letter. “I couldn’t really believe it,” he said. “I didn’t think I really owed anything.”Mr. Durham had never been contacted about the loans until he received that letter. “I couldn’t really believe it,” he said. “I didn’t think I really owed anything.”
He had not worked steadily for years and had been receiving about $740 a month in disability benefits. He was still driving a cab once a week because he enjoyed the job, but that did not bring in any significant income.He had not worked steadily for years and had been receiving about $740 a month in disability benefits. He was still driving a cab once a week because he enjoyed the job, but that did not bring in any significant income.
“I was just stressed,” Mr. Durham said. “I didn’t know what to do.”“I was just stressed,” Mr. Durham said. “I didn’t know what to do.”
Not long after, he spotted a flier in a Manhattan library for the Financial Coaching Corps, a program run by the Community Service Society, one of the seven organizations supported by The New York Times Neediest Cases Fund.Not long after, he spotted a flier in a Manhattan library for the Financial Coaching Corps, a program run by the Community Service Society, one of the seven organizations supported by The New York Times Neediest Cases Fund.
A volunteer stationed at the library referred Mr. Durham to Courtney Davis, the corps’s community development specialist. The Community Service Society received a grant from The Neediest Cases Fund endowment this year that covered a portion of Ms. Davis’s salary.A volunteer stationed at the library referred Mr. Durham to Courtney Davis, the corps’s community development specialist. The Community Service Society received a grant from The Neediest Cases Fund endowment this year that covered a portion of Ms. Davis’s salary.
Ms. Davis helped Mr. Durham prove that his dementia made him eligible to have his loans discharged. His case was approved in 2016, but the process did not end there. Over the next three years, Mr. Durham met with Ms. Davis about a dozen times. She helped him submit heaps of documents proving that he remained disabled and that he could not afford to repay the loans on his fixed income.Ms. Davis helped Mr. Durham prove that his dementia made him eligible to have his loans discharged. His case was approved in 2016, but the process did not end there. Over the next three years, Mr. Durham met with Ms. Davis about a dozen times. She helped him submit heaps of documents proving that he remained disabled and that he could not afford to repay the loans on his fixed income.
“I commend him absolutely because he’s been willing to show up, and he’s always been able to get his paperwork together,” Ms. Davis said. “It’s a long process, and Mr. Durham’s been patient and has stuck to it.”“I commend him absolutely because he’s been willing to show up, and he’s always been able to get his paperwork together,” Ms. Davis said. “It’s a long process, and Mr. Durham’s been patient and has stuck to it.”
“I don’t really have any choice,” Mr. Durham said, laughing.“I don’t really have any choice,” Mr. Durham said, laughing.
On Friday, Ms. Davis and Mr. Durham submitted the final documents and are now awaiting confirmation that Mr. Durham can walk away from the process worry free.On Friday, Ms. Davis and Mr. Durham submitted the final documents and are now awaiting confirmation that Mr. Durham can walk away from the process worry free.
Ms. Davis has worked with many seniors who have been in Mr. Durham’s situation. “My clients talk about having never heard from their bank or their school or the federal government until they started receiving Social Security payments,” she said. “There was no sense that these loans would follow them the rest of their life.”Ms. Davis has worked with many seniors who have been in Mr. Durham’s situation. “My clients talk about having never heard from their bank or their school or the federal government until they started receiving Social Security payments,” she said. “There was no sense that these loans would follow them the rest of their life.”
Americans collectively owe about $11.6 trillion in student loan debt, and an increasingly large share of that burden is falling on older Americans like Mr. Durham. A recent AARP study found that people over 50 collectively carry about $289.5 billion in student debt, a more than fivefold increase since 2004. In 2015, the most recent year for which data was available, 37 percent of borrowers over 65 had defaulted on their loans, according to AARP. Of those in default, 5 percent had money withheld from federal payments to satisfy their debt. Americans collectively owe about $1.6 trillion in student loan debt, and an increasingly large share of that burden is falling on older Americans like Mr. Durham. A recent AARP study found that people over 50 collectively carry about $289.5 billion in student debt, a more than fivefold increase since 2004. In 2015, the most recent year for which data was available, 37 percent of borrowers over 65 had defaulted on their loans, according to AARP. Of those in default, 5 percent had money withheld from federal payments to satisfy their debt.
This year, the Community Service Society introduced the Education Debt Consumer Assistance Project, a program that expands on the work of the Financial Coaching Corps. A help line and free one-on-one counseling are available to borrowers who may be overwhelmed when it comes to managing their debt.This year, the Community Service Society introduced the Education Debt Consumer Assistance Project, a program that expands on the work of the Financial Coaching Corps. A help line and free one-on-one counseling are available to borrowers who may be overwhelmed when it comes to managing their debt.
“It’s a crisis,” Ms. Davis said, “and I think that’s why we wanted to do more around this work.”“It’s a crisis,” Ms. Davis said, “and I think that’s why we wanted to do more around this work.”
These days Mr. Durham lives alone in a one-bedroom Section 8 apartment in East New York, Brooklyn. He frequents a senior center in a public housing complex near his home, where he exercises, plays billiards and practices tai chi. He receives $14 a month in Supplemental Security Income in addition to his monthly disability benefits, which have risen to about $780.These days Mr. Durham lives alone in a one-bedroom Section 8 apartment in East New York, Brooklyn. He frequents a senior center in a public housing complex near his home, where he exercises, plays billiards and practices tai chi. He receives $14 a month in Supplemental Security Income in addition to his monthly disability benefits, which have risen to about $780.
Despite the demands and stress that came with his case, Mr. Durham said he never lost hope because he had faith in Ms. Davis.Despite the demands and stress that came with his case, Mr. Durham said he never lost hope because he had faith in Ms. Davis.
He turned to her and said, “I appreciate you — everything you do.”He turned to her and said, “I appreciate you — everything you do.”
Donations to The Neediest Cases Fund may be made online, or with a check or over the phone.Donations to The Neediest Cases Fund may be made online, or with a check or over the phone.