"The government can withhold up to 15% of your monthly Social Security benefit if you are in default on a federal student loan, but your monthly payment cannot fall below $750. For someone living on a modest fixed income, losing even a fraction of that check can mean choosing between groceries and utilities."
"An estimated 452,000 Social Security recipients are currently in default on federal student loans and potentially subject to this offset when collections resume. Many are retirees who took out loans decades ago, saw their balances grow."
Garnishment of Social Security benefits for delinquent federal student loan borrowers is currently paused, with a resumption date linked to a new repayment plan starting July 2026. The Trump administration initially paused garnishments in summer 2025, and the Department of Education extended this pause in January 2026. The new repayment plan, RAP, will affect borrowers who do not enroll or resolve their default status. Up to 15% of Social Security benefits can be garnished, impacting those living on fixed incomes significantly.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]