US EditionOlder people in crosshairs as government restarts Social Security garnishment on student loans
- The Trump administration resumed collections on defaulted federal student loans in May 2025, including garnishing Social Security benefits.
- This move follows a five-year pause on payments and interest triggered by the pandemic, and a January report showed 452,000 borrowers aged 62 and older in default.
- Older Americans hold about $125 billion in student debt, with garnishment notices expected to affect millions, risking hardship despite $750 of Social Security being protected.
- Experts and borrowers report harsh impacts, including struggling to afford essentials and taking drastic financial measures, as illustrated by cases like Christine Farro’s $250,000 debt accrued over decades.
- The resumption raises concerns about worsening conditions for older debtors and calls for borrowers to seek help from the Education Department’s Default Resolution Group to explore repayment options.
117 Articles
117 Articles
Trump admin announces certain Social Security beneficiaries will face 15% cuts in June
Starting next month, Social Security beneficiaries who have fallen behind on their student loan payments face up to 15% garnishment of their payments.Earlier this month, the Trump administration announced student loan borrowers in default will be once again subject to the long-halted Treasury Offset Program (TOP).
What to know about the U.S. House GOP’s student loan overhaul • Daily Montanan
The U.S. Capitol pictured on March 25, 2025, in Washington, D.C. (Photo by Shauneen Miranda/States Newsroom) WASHINGTON — Students and families could see significant changes to how student loans are repaid as well as cuts to federal student aid as congressional Republicans look to slash billions of dollars in federal spending to offset the cost of President Donald Trump’s sweeping agenda. Republicans are using the complex reconciliation process …
For these folks with student loan debt, US may seize Social Security benefits
Christine Farro has cut back on the presents she sends her grandchildren on their birthdays, and she’s put off taking two cats and a dog for their shots. All her clothes come from thrift stores and most of her vegetables come from her garden. At 73, she has cut her costs as much as she can to live on a tight budget.
What to know about the U.S. House GOP’s student loan overhaul • SC Daily Gazette
The U.S. Capitol pictured on March 25, 2025, in Washington, D.C. (Photo by Shauneen Miranda/States Newsroom) WASHINGTON — Students and families could see significant changes to how student loans are repaid as well as cuts to federal student aid as congressional Republicans look to slash billions of dollars in federal spending to offset the cost of President Donald Trump’s sweeping agenda. Republicans are using the complex reconciliation process …
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