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June Social Security Checks Could Fall Significantly For Some Due To Student Loan Garnishments — Experts Outline Relief Options
- Starting in June 2025, thousands of retirees in default on federal student loans may see reductions in their Social Security checks due to resumed benefit garnishments in the U.S.
- This resumption follows a nearly five-year pause on involuntary collections caused by Covid-era policies, with some reports confirming the restart but noting varied borrower impacts.
- The U.S. Department of Education will begin withholding up to 15% of Social Security payments to collect on defaulted student loans, impacting more than 450,000 borrowers aged 62 and older who depend on these funds.
- Experts recommend borrowers prove financial hardship, seek loan discharge, or enroll in income-driven repayment plans to avoid or stop garnishments, noting the need for a 30-day notice before offsets.
- The renewed collections aim to reduce federal defaults but raise concerns about retirees' financial strain and underline calls to improve higher education finance transparency.
13 Articles
13 Articles
June Social Security Checks Could Fall Significantly For Some Due To Student Loan Garnishments — Experts Outline Relief Options
Retirees who have defaulted on their student loans may see a reduction in their Social Security checks from June. This is a result of the U.S. Department of Education’s decision to recommence involuntary collections on defaulted student loans, including garnishing wages, intercepting tax refunds and seizing a portion of Social Security benefits. What Happened: The U.S. Department of Education is set to recommence collection activity on the natio…
Social Security payments could shrink for some recipients in June — here's why
Some Social Security recipients could see reduced payments this month due to a policy change allowing garnishment of benefits for unpaid student loans, NBC Philadelphia reported Sunday.This follows an April 21 announcement from the Trump administration that the U.S. Department of Education would restart collection efforts on the nation’s $1.6 trillion student loan debt.The report referenced a finding from the Consumer Financial Protection Bureau…
Thousands of student-loan borrowers are at risk of losing a portion of their Social Security checks starting this month
President Donald Trump's administration is restarting federal benefits garnishment for defaulted student-loan borrowers.Andrew Harnik/Getty ImagesStudent-loan borrowers in default are at risk of federal benefits garnishment starting in early June.Millions more defaulted borrowers could face wage garnishment later this summer.Trump restarted collections on defaulted student loans in May, after a five-year pause.Thousands of student-loan borrowers…
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