Sen. Bernie Sanders, I-Vt., introduced the Stop Social Security Garnishment Act, designed to prohibit the withholding of Social Security payments from beneficiaries with outstanding federal student loan debt. The proposal will be formally presented when the Senate returns to session next month. The legislation has garnered support from Democratic Sens. Elizabeth Warren and Ed Markey of Massachusetts.
Federal data indicates approximately 9.5 million borrowers are currently in default on their student loans. According to Sanders’ office, roughly one in four borrowers cannot manage their loan repayment obligations and face potential seizure of wages or Social Security benefits. An estimated 9.6 million borrowers aged 50 and older carry nearly $457 billion in outstanding student loan debt, based on second-quarter Education Department figures.
The Trump administration implemented a pause on involuntary collection activities for defaulted federal student loan borrowers. The administration announced in June 2025 that it would not reduce Social Security benefits for affected borrowers, reversing an earlier position taken after pandemic-era protections were lifted. Subsequently, in January, the Education Department announced a delay in wage garnishment and related collection efforts while implementing new federal student loan repayment options authorized through tax legislation.
Sanders’ proposed measure would protect older adults with defaulted student loans from forced collection of their Social Security retirement and disability benefits, allowing them to maintain funds for essential expenses including healthcare, medications, and housing. The senator emphasized in a statement that seniors in the United States should retain their Social Security payments despite outstanding student debt obligations, particularly given rising costs across healthcare, pharmaceuticals, food, and housing sectors.
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