Social Security Checks Safe From Student Loan Garnishment, For Now

The government has stopped taking Social Security benefits to repay student loans. This move gives temporary relief to hundreds of thousands of retirees. Many older Americans feared losing a part of their income.

The Department of Education confirmed the temporary halt. The department will not garnish Social Security checks for delinquent student loans. This decision reverses a policy that was set to restart this summer. The pause provides critical breathing room for older people on fixed incomes.

This issue affects a growing number of older Americans. Data shows people over 60 hold billions in student loan debt. This debt often comes from loans for their children or their own past education. For many, Social Security is their main source of funds. A 15 percent garnishment could push them toward poverty.

Why Were Garnishments Happening?

Federal law allows the government to collect on defaulted debts. This includes overdue federal student loans. The Treasury Department can “offset” federal payments, like Social Security. This collection method was paused during the COVID-19 pandemic. The recent plan was to restart these collections.

Advocacy groups strongly opposed the restart. They argued that taking essential retirement income is cruel. It creates financial hardship for a vulnerable population. The pressure from these groups and lawmakers likely influenced the recent pause.

What Can Retirees with Student Debt Do Now?

This pause offers a valuable window of opportunity. It is not a permanent solution. The government has not said how long the pause will last. Older people with defaulted student loans should act now to find a long-term fix.

Here are the key options available:

• Apply for an Income-Driven Repayment (IDR) Plan. These plans set your monthly payment based on your income. For most retirees on Social Security, their taxable income is low. This can result in a monthly payment as low as $0. An IDR plan can get your loan out of default and stop collection calls. You can apply for an IDR plan on the Federal Student Aid website.
• Check Your Eligibility for Loan Forgiveness. Several federal programs might cancel your student debt entirely. The Public Service Loan Forgiveness (PSLF) program helps those who worked for the government or non-profits. A Total and Permanent Disability (TPD) discharge is also an option for those who qualify.
• Consider Loan Rehabilitation. This process requires you to make nine affordable monthly payments over ten months. After you complete the program, the default status is removed from your loan. This also stops garnishments.

A Bill in Congress Seeks a Permanent Ban

While the current pause is an administrative decision, Congress is looking at a permanent fix. The “Ending Administrative Wage Garnishment Act of 2025” was introduced in the Senate. This bill would permanently stop the government from garnishing Social Security benefits for student loan debt. The bill’s future is uncertain. It has not yet been voted on.

For now, the halt on garnishments brings immediate relief. Hundreds of thousands of older people can breathe easier. However, the future remains unclear. Taking proactive steps to manage your student loan debt is the best course of action.