If you are a senior citizen depending on your Social Security check to cover your monthly bills, there is some tough news you need to hear. Starting in June 2025, the U.S. Department of Education has resumed student loan garnishments, which means your Social Security check could be reduced—potentially down to just $750 per month.
This comes after nearly five years of relief during the COVID-19 pandemic, when the government paused collection on defaulted federal student loans. That break is officially over, and many older Americans are now seeing the consequences.
The federal government can legally garnish up to 15% of your Social Security benefits if you have defaulted on federal student loans. However, they are required to leave you with a minimum monthly amount of $750, no matter how much you originally received.
Who will be affected by student loan garnishments?
You are probably wondering: “Will my check be affected?” It depends on your situation. The most vulnerable group includes those who:
- Are 62 or older
- Receive Social Security benefits
- Have defaulted on federal student loans
According to the Consumer Financial Protection Bureau, there are over 450,000 borrowers in this age group who fall into this category. If you are one of them, then your June payment—arriving either on June 3, 11, 18, or 25, depending on your birth date and when you started receiving benefits—could be smaller than usual.
Nancy Altman, president of Social Security Works, called it a “terrifying blow” for low-income seniors. She warned, “They are going to get hit with higher prices, higher housing costs—and now, a smaller check.”
How much could be taken from your Social Security benefits?
Let us break it down clearly. If you are in default on your federal student loans, the government can garnish up to 15% of your monthly benefit, but cannot reduce your payment below $750.
So if you normally receive:
- $1,000/month: You could lose $150 and be left with $850
- $900/month: Garnishment could drop you to the $750 minimum
- $800/month or less: Your check will likely go down to exactly $750
While this might sound like just a small reduction, for people who rely on every dollar to survive, it can mean skipping meals or falling behind on utility bills.
Can you stop the garnishment from happening?
If you are reading this before your payment date, there is still time to take action. The Department of Education offers ways for you to get out of default and potentially pause or stop garnishment.
Here are your options:
- Loan Rehabilitation: A process that lets you make a series of affordable payments to get out of default
- Consolidation: You can combine your loans into one new loan and start fresh
- Applying for Income-Driven Repayment Plans: These plans consider your income and family size to set monthly payments as low as $0
But here is the catch—you must act quickly. Once garnishments start, it becomes harder to reverse the process. You can call your loan servicer or visit studentaid.gov for help.
What can you expect moving forward?
If you are impacted by this change, you are not alone. Seniors across the country are facing similar hardships. What is clear is that the government is restarting aggressive debt collection on a population already under financial strain. This issue is only expected to grow, especially as more Baby Boomers age into retirement while still carrying student loan debt.
Do not wait until your check shrinks. If you think you are at risk, take steps now to understand your loan status and find a way forward.
Related article:
Goodbye to Student loan forgiveness tax relief – GOP looks to set date to cancel relief
