Education Department Halts Plan to Garnish Social Security for Defaulted Student Loans

The U.S. Department of Education is hitting pause on a controversial plan to garnish Social Security benefits from Americans who have defaulted on their student loans.

This temporary halt means that Social Security recipients—many of whom rely on those payments for retirement or disability—will not face immediate reductions in their checks due to unpaid federal student debt.

Originally, the Education Department had signaled that garnishments could begin as early as June. Under existing law, the federal government has the authority to collect on defaulted loans by seizing tax refunds, paychecks, and even Social Security benefits. In some cases, up to 15% of a person’s Social Security check can be withheld to repay student debt.

Officials have not specified how long the pause will last, but the decision provides some financial breathing room for those who depend on Social Security and are struggling with defaulted loans.

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