Key facts
- A new bill aims to prevent the Treasury from garnishing Social Security payments for older student-loan borrowers and those with disabilities.
- The legislation was introduced by Sens. Bernie Sanders, Elizabeth Warren, and Ed Markey.
- The bill would protect borrowers from "unnecessary forced collections" by prohibiting the seizure of Social Security payments.
- Student loan defaults are at a record high, with over 9 million borrowers in default.
- The Treasury Department can currently withhold up to 15% of a student-loan borrower's Social Security check.
Democratic lawmakers are pushing for legislation to prevent older student-loan borrowers and those with disabilities from having their Social Security payments garnished if they fall behind on payments. Senators Bernie Sanders, Elizabeth Warren, and Ed Markey introduced a bill that would prohibit the Treasury Department from seizing Social Security benefits, including Social Security Disability Insurance, to collect on defaulted student loans.
Sanders stated that no senior in the United States should have their Social Security payments taken to pay back student debt, especially given the rising costs of essential goods and services. The proposed legislation comes at a time when student-loan defaults are at a record high, with over 9 million borrowers in default as of March.
Student-loan delinquencies stood at 10.6% in the second quarter of 2026, a slight increase from the previous quarter. While delinquency rates are stabilizing, researchers suggest they could rise again following the elimination of the SAVE repayment plan. The Trump administration had previously announced a pause on Social Security garnishment for defaulted student loans in May 2025, intended to facilitate the implementation of repayment changes. The Education Department also paused wage garnishments. The Treasury Department has the authority to withhold up to 15% of a borrower's Social Security check, federal salary, or their entire federal tax refund.