Sen. Bernie Sanders, an independent from Vermont, announced legislation aimed at protecting Social Security beneficiaries from having their payments withheld due to unpaid federal student loan debt. The measure, titled the Stop Social Security Garnishment Act, will be formally introduced when the Senate reconvenes next month. Democratic senators Elizabeth Warren and Ed Markey, both from Massachusetts, have signaled their support for the proposal.
The bill addresses a situation affecting millions of borrowers. Approximately 9.5 million individuals are currently in default on federal student loans, according to an analysis of government data through March. Sanders’ office indicated that roughly one in four borrowers face challenges repaying their obligations and risk having either wages or Social Security benefits seized. Approximately 9.6 million borrowers aged 50 and older carry roughly $457 billion in outstanding student loan debt, according to Education Department figures.
The timing of Sanders’ proposal coincides with recent administrative actions. The Trump administration has implemented a pause on involuntary debt collection activities for borrowers in default. In June 2025, the administration announced it would not reduce Social Security benefits for affected individuals, reversing an earlier position announced after previously indicating plans to resume collection efforts. The Education Department subsequently stated in January that it would delay wage garnishment and other involuntary collection measures while implementing new federal student loan repayment options introduced through recent tax legislation. These reforms, effective from July 1, modified available repayment plans and introduced two additional options for borrowers.
Sanders’ legislation would provide statutory protection preventing the reduction of Social Security retirement or disability benefits to satisfy outstanding student loan obligations. According to the proposal, this safeguard would allow older adults with defaulted loans to maintain funds necessary for essential expenses including healthcare, medication, and food. Sanders stated that protecting senior citizens’ benefit payments aligns with ensuring basic financial security for those already facing elevated costs across multiple categories.
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