Urgent notice for Social Security recipients with student loans – These are the Americans who will lose up to 15% of their payments in June

Here’s something you need to know: if you’re getting Social Security—or SSI—and you’ve got those older student loans hanging over your head, I’ve got bad news for you: things are going to get a little rough. This June, the government is going to begin withholding part of your monthly payment. That’s right, as much as 15% will be taken out to pay back those old federal student loans in default.

But don’t freak out just yet—there’s still hope to repair this. Let’s work through what’s going on and what you can do about it.

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Who’s Getting Hit?

This new move affects people who:

• Get Social Security or SSI
  
• Have federal student loans that are in default (meaning they haven’t made payments in over 270 days)
  
• Haven’t set up a payment plan or asked for forbearance
  

This includes retirees and folks with disabilities who depend on their benefits for the basics—food, rent, or even medication. Not exactly extra money to spare, right?

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How Does the 15% Cut Work?

Here’s something you need to know: if you’re getting Social Security—or SSI—and you’ve got those older student loans hanging over your head, I’ve got bad news for you: things are going to get a little rough. This June, the government is going to begin withholding part of your monthly payment. That’s right, as much as 15% will be taken out to pay back those old federal student loans in default.

But don’t freak out just yet—there’s still hope to repair this. Let’s work through what’s going on and what you can do about it.

Why Is This Happening?

The Trump administration says this is all about fiscal responsibility. They don’t want taxpayers to keep eating the cost of unpaid loans, especially when, according to them, borrowers had plenty of chances to avoid default.

One official even said people were notified ahead of time, so they had time to take action. But critics aren’t buying it.

People Are Speaking Out

Advocacy groups like Justice in Aging are furious. They argue that hitting seniors and people with disabilities over debts from 20 or 30 years ago is just plain wrong.

“Cruel and unjust,” they said. And they’re worried it’s going to trap even more people in poverty.

What you can do right now

Here’s the good news—those reductions can still be avoided if you act soon. Here are a few things to keep in mind:

• Apply for an income-driven repayment plan— If you’re low-income, your payment may drop as low as $0.
• Request disability discharge—If you’re totally and permanently disabled, you may not need to pay anything.
• Request forbearance or deferment—This suspends your payments temporarily.
• Call your loan servicer and ask about options or protest the garnishment.

Whatever you do, don’t wait—once the cuts begin, reversing them can take months.

How many people are affected?

According to the Government Accountability Office, more than 114,000 people over 60 are behind on student loans. About 30,000 of them get Social Security. So yeah, this isn’t a small issue—it’s a wave that could hit tens of thousands of homes.

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Protect your check

If this sounds like you, don’t just cross your fingers and hope it’ll blow over. Make a call, ask questions, look into repayment plans—do something now before June hits. Your income is too important to lose.