Social Security Protection for Student Loan Borrowers

Introduction to the Issue

Borrowers who have defaulted on their federal student loans will no longer be at risk of having their Social Security benefits garnished, an Education Department spokesperson said Tuesday. The government last month restarted collections for the millions of people in default on their loans. An estimated 452,000 people aged 62 and older had student loans in default, according to a January report from the Consumer Financial Protection Bureau.

Background on the Problem

The department has not garnished any Social Security benefits since the post-pandemic resumption of collections and has paused “any future Social Security offsets,” department spokesperson Ellen Keast said. “The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income,” Keast said.

Advocates’ Response

Advocates encouraged the Trump administration to go further to provide relief for the roughly 5.3 million borrowers in default. “Simply pausing this collection tactic is woefully insufficient,” said Persis Yu, executive director of the Student Borrower Protection Center. “Any continued effort to restart the government’s debt collection machine is cruel, unnecessary and will further fan the flames of economic chaos for working families across this country.”

The Rise of Student Loan Debt Among Older Adults

Student loan debt among older people has grown at a staggering rate, in part due to rising tuition that has forced more people to borrow heavily. People 60 and older hold an estimated $125 billion in student loans, according to the National Consumer Law Center, a sixfold increase from 20 years ago.

That led Social Security beneficiaries who have had their payments garnished to balloon from approximately 6,200 beneficiaries to 192,300 between 2001 and 2019, according to the CFPB.

Conclusion

The decision to pause the garnishment of Social Security benefits for student loan borrowers in default is a step in the right direction. However, advocates argue that more needs to be done to provide relief to borrowers, especially those who are struggling to make ends meet. As the issue of student loan debt continues to grow, it is essential that policymakers find solutions that balance the need to collect debt with the need to protect vulnerable populations.

FAQs

• Q: Will my Social Security benefits be garnished if I default on my federal student loan?
  • A: No, the Education Department has paused the garnishment of Social Security benefits for borrowers in default.
• Q: How many people are affected by student loan debt?
  • A: Approximately 5.3 million borrowers are in default, and people 60 and older hold an estimated $125 billion in student loans.
• Q: Why has student loan debt among older adults increased?
  • A: The increase is partly due to rising tuition costs, which have forced more people to borrow heavily to finance their education.
• Q: What is being done to address the issue of student loan debt?
  • A: Advocates are pushing for further relief for borrowers, including pausing debt collection and finding alternative solutions to manage debt.
    By CHEYANNE MUMPHREY
    Originally Published: June 3, 2025 at 3:25 PM EDT