If you are behind on your student loan payments and receive Social Security benefits, you probably already know how painful garnishment can be. Basically, when you default on your federal student loans, the government has the power to take money directly out of your Social Security check. This process is called Social Security garnishment, and it has left many older Americans—especially those on fixed incomes—with even less money to cover essentials.
But there is some relief on the way.
On Monday evening, the Department of Education announced that it is pausing Social Security garnishment for student loan borrowers who are in default. That means, for now, your monthly Social Security check will not be reduced to repay defaulted student loans.
Why did Trump pause the social security garnishment?
This decision comes after the federal government resumed collections on defaulted student loans on May 5, following a five-year pandemic-related pause that began during the Trump administration. Now, President Donald Trump is stepping back in to temporarily halt one of the most aggressive collection methods.
According to Ellen Keast, spokesperson for the Department of Education:
“The Department has not offset any social security benefits since restarting collections on May 5, and has put a pause on any future social security offsets.”
She also emphasized that the move is meant to protect people who depend heavily on their monthly Social Security checks:
“The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income.”
When will social security garnishment resume?
Right now, the Department of Education has confirmed that the garnishment pause is temporary. A notice posted on the department’s debt resolution page states that the garnishment of Social Security benefits is being delayed “for a couple of months” and is expected to resume sometime this summer.
That means if you are a borrower in default, you might have a few months of breathing room, but it is not a permanent solution. The department still intends to restart wage garnishment around the same time.
What should you do if you are in default?
If you are in default and receiving Social Security, now is a good time to explore options to get your loan out of default. According to the Education Department, it plans to start proactive outreach to borrowers to help them return to good standing. That includes information about affordable repayment plans, like Income-Driven Repayment (IDR), which could significantly lower your monthly payments.
Here is what you can do now:
- Visit studentaid.gov to review your loan status
- Contact your loan servicer to ask about loan rehabilitation or consolidation
- Consider applying for an IDR plan if you are eligible
These steps could stop future garnishment altogether and help you stay current without losing part of your Social Security check.
How many borrowers will this pause help?
While the Department has not given a specific number, tens of thousands of older borrowers have been affected by garnishments in the past. With the cost of living on the rise, even losing a small portion of Social Security can make it hard to pay for housing, medication, or groceries. This pause could provide immediate relief to many who are struggling to make ends meet.
If you are one of them, do not wait until the garnishment starts again. Take advantage of this pause to fix your loan status and keep your benefits intact.
