Writer: Lucy Lazarony
Editor: Adam West
Reviewer: Ashley Fricker
Key Takeaways
- Nearly one in four federal student loan borrowers may now be in default and vulnerable to forced collection.
- The current federal pause does not guarantee that Social Security offsets won’t restart later.
- Sanders’ proposal would permanently shield Social Security and disability benefits from student debt collection.
Student loan debt can follow borrowers into retirement, and take a bite out of their Social Security checks. Sen. Bernie Sanders and two Democratic colleagues want to stop that.
“As a result of Trump’s disastrous cuts to education, an increasing number of seniors are in danger of having their Social Security checks garnished to pay back student loans they took out decades ago. That is beyond unacceptable,” Sanders said.
His proposed legislation would protect benefits that many seniors need to pay for healthcare, prescription drugs, groceries, housing, and other everyday expenses.
“No senior should have their Social Security payments taken away from them to pay back student debt.” — Sen. Bernie Sanders (I-VT)
“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,” Sanders said. “This is especially true when seniors throughout the country already cannot afford the skyrocketing price of healthcare, prescription drugs, groceries, and housing.”
Sens. Elizabeth Warren (D-MA) and Ed Markey (D-MA) are co-sponsors of the proposed legislation.
Older Borrowers Are Caught in a Debt Squeeze
About 42.6 million Americans collectively owed $1.7 trillion in federal student loans as of March 2026, Federal Student Aid data show. The latest available Consumer Financial Protection Bureau data counted 2.7 million student loan borrowers ages 62 and older in 2023.
Roughly 9 million Americans are in default on their federal student loans — and their paychecks may not be the only money at risk. Sanders’ bill summary says nearly one in four federal borrowers could face collection efforts that include garnishing wages or Social Security benefits.
Those Social Security collections are paused for now. But the Department of Education has not said when they may restart, and borrowers remain exposed unless Congress makes the protection permanent.
For older Americans living on a tight budget, the stakes are high. More than one-third of Social Security beneficiaries with student loans rely on their monthly checks to make ends meet, according to the bill summary.
Half of Social Security beneficiaries with defaulted student loans in collections reported skipping a doctor’s visit or going without prescription medication because of the cost, according to the CFPB.
Sanders Wants Social Security Checks Off-Limits
The proposed legislation is called the Stop Social Security Garnishment Act of 2026.
The bill would permanently prohibit the federal government from garnishing Social Security benefits, including Social Security Disability Insurance payments, to collect defaulted student loan debt.
The protection would allow older adults and people with disabilities to keep their full benefits.
