Sen. Bernie Sanders of Vermont announced a legislative proposal aimed at protecting Social Security recipients from having their benefits reduced to pay outstanding federal student loan debt. The measure, titled the Stop Social Security Garnishment Act, is being co-sponsored by Democratic Sens. Elizabeth Warren and Ed Markey of Massachusetts. Sanders said he would formally introduce the bill when the Senate reconvenes next month.
According to federal data analyzed through March, approximately 9.5 million borrowers currently are in default on their student loans. Sanders’ announcement cited data indicating that roughly one in four borrowers are unable to repay their loans and face potential wage or Social Security benefit seizure. The proposal would specifically shield older adults whose loans are in default from involuntary collection of their Social Security retirement or disability payments, allowing them to maintain funds for essential expenses including healthcare, medications, and food.
The Education Department reported that around 9.6 million student loan borrowers are ages 50 and older, carrying nearly $457 billion in combined outstanding loans based on second-quarter data. The proposal arrives as the Trump administration has implemented a pause on involuntary collection activities for borrowers in default. In June 2025, the administration announced it would not reduce Social Security benefits for affected borrowers, reversing an earlier plan to resume collection efforts following pandemic-era protections that had been in place for delinquent borrowers. In January, the Education Department announced a delay in wage garnishment and other involuntary collections while implementing new federal student loan repayment options introduced through tax law reforms that took effect on July 1.
Sanders stated that seniors throughout the country already struggle with escalating costs for healthcare, prescription drugs, groceries, and housing, arguing that benefit reductions would exacerbate financial hardship for vulnerable populations.
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