Millions of Older Americans Could Lose Part of Their Social Security Check - Here's the Bill That Could Stop It

Your Social Security check may feel safely out of reach when you owe money, but federal student loans can be an exception. If you have fallen behind on one, the government may be able to take part of your monthly benefit to collect the debt, which can be especially tough if you are living on just Social Security.

A new bill from Sen. Bernie Sanders would stop those deductions. For older borrowers still carrying student debt, that could mean keeping more of the Social Security money they rely on each month.

How the garnishment works and who it affects

If your federal student loan goes into default, the government can use the Treasury Offset Program (TOP) to take money directly from your Social Security benefit. Up to 15% of your monthly check can be withheld, although you must generally be left with at least $750 a month.

That $750 protection dates back to 1996 and has never been adjusted for inflation. It was slightly above the federal poverty line when it was created, but today it falls roughly $400 below it.

The Consumer Financial Protection Bureau (CFPB) estimated that about 452,000 people age 62 and older with defaulted federal student loans were likely receiving Social Security, putting hundreds of thousands of older borrowers within reach of this collection rule.

That said, only federal student loans can lead to this type of withholding, so private student loan debt can't reduce your Social Security check through the Treasury Offset Program.

More retirees are carrying student debt into retirement

More than 3 million Americans age 62 and older now carry federal student loans. Some older borrowers took out Parent PLUS loans to help their children attend college, while many are still carrying debt from their own education.

As more older borrowers have carried student debt into retirement, Social Security garnishment has become much more common. Fewer than 7,000 beneficiaries had money withheld for student loans in 2001, compared with roughly 192,000 in 2019. The amount collected over that period climbed from about $16 million to nearly $430 million.

For retirees who depend heavily on Social Security, even a smaller deduction can be tough to work around. The CFPB found that half of these borrowers had skipped a doctor's visit or gone without medication they needed because they couldn't afford it.

When could Social Security garnishment start again?

The Department of Education paused involuntary collections during the pandemic and has extended that pause several times. The latest extension came in January 2026, giving borrowers more time to move into new repayment plans.

That pause can be easy to mistake for a permanent change, but the government still has the legal power to take money from Social Security checks for defaulted federal student loans. Once the pause ends, those collections could start again.

How would the Sanders bill protect your Social Security check?

The Stop Social Security Garnishment Act of 2026 would prevent the federal government from taking money out of Social Security retirement or disability benefits to collect defaulted student loans. Borrowers would still owe the debt, but their monthly Social Security checks would no longer be used to pay it back.

The government could continue collecting through other methods, so the bill is focused specifically on protecting Social Security and SSDI benefits.

As Sanders put it when announcing the proposal, "In the richest country in the history of the world, no senior should have their Social Security payments taken away from them to pay back student debt."

The bill has drawn support from groups representing retirees and consumers, including the Alliance for Retired Americans and the National Consumer Law Center.

What to check if you still have federal student debt

Start by checking your loan status at studentaid.gov. If any of your federal loans are already in default, getting them back into good standing through rehabilitation or consolidation can help protect your Social Security from garnishment and may reopen access to income-driven repayment plans.

Some older borrowers may also qualify to have their federal student debt discharged because of a total and permanent disability. The CFPB has found that this option is underused among older borrowers who may be eligible.

If you receive a notice that your Social Security benefit is about to be reduced, act before the offset begins. You may be able to request a review, challenge the debt, or ask for hardship relief if the reduction would leave you unable to cover basic living costs.

Bottom line

If you still have federal student loans, a little preparation now could help protect your Social Security check later. The Sanders bill could eventually remove the garnishment risk altogether, but you still have options even before Congress acts.

Checking your loan status on studentaid.gov can show you whether your benefits could be at risk and what options you have. If Social Security is a key part of your retirement plan, dealing with a default before collections resume could save you from having to rewrite your monthly budget later.

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