The federal government has resumed garnishment of Social Security benefits for older adults with defaulted student loans, ending a pandemic-era pause and placing hundreds of thousands of seniors under financial strain. The restart of collections affects retirees who still owe on decades-old federal student debt, some of whom have already seen their limited income reduced by forced repayment.
Among them is Christine Farro, 73, a retired child welfare worker from Santa Ynez, California. Her federal loans date back 40 years, initially taken to fund a bachelor’s and later a master’s degree. Despite working nights and weekends, she was never able to keep up with the loan. Her debt ballooned to $250,000 by 2008. After briefly benefiting from the government’s loan pause during the pandemic, she now expects garnishment of her benefits to resume.
Student Debt Rising Sharply Among Seniors
The decision to resume collections, implemented by the Department of Education, follows the expiration of a grace period that began in 2020. It enables the government to reclaim debts through garnishing wages, tax refunds, and Social Security payments, including retirement and disability checks. For many older adults like Farro, this can mean a loss of basic needs. “I’ve cut everything I can,” she said, noting her reliance on thrift stores, homegrown vegetables, and shared housing in a 400-square-foot casita.
Student loan debt among Americans aged 60 and over has reached $125 billion, according to the National Consumer Law Center—a sixfold increase over the last two decades. This rise is attributed to higher tuition costs and long-term compounding interest. The Consumer Financial Protection Bureau (CFPB) reports a 3,000% increase in garnished Social Security beneficiaries between 2001 and 2019, with 452,000 individuals aged 62 and older now in default.
450,000 seniors are in default on student loans presently 🤯
— 🤠 Weimar Silver Baron 🤠 (@BankerWeimar) May 15, 2025
“Millions of Americans who rely on Social Security could see some of their monthly benefits seized, starting in June, if they have defaulted on their student loan debts” pic.twitter.com/gI96BCFIQc
Impossible Choice and Limited Options
Debbie McIntyre, a 62-year-old teacher in Georgetown, Kentucky, dreams of retiring to write historical fiction. But with her husband on disability and a looming $300 rent increase, she fears her paycheck may soon be garnished. She has considered bankruptcy but knows that student loans are not discharged as easily as other debts. “I don’t know what more I can do,” she said, unable to even check her loan balance out of fear.
These financial pressures lead many to take desperate steps. Braxton Brewington of the Debt Collective said his organization regularly hears from older debtors who skip meals, split medications, or drain retirement savings. He noted that many borrowers have already repaid the original loan amounts multiple times, yet continue to owe more due to compounded interest and penalties.
Linda Hilton, a 76-year-old retired office worker, stands in front of her home Tuesday, May 13, 2025, in Apache Junction, Ariz. (AP Photo/Ross D. Franklin)
Responses from Policymakers and Affected Borrowers
Federal law currently shields only $750 of Social Security income from garnishment, an amount that leaves recipients below the federal poverty line. Sarah Sattelmeyer, of the New America think tank, described the situation as contradictory: “We’re basically providing people with federal benefits with one hand and taking them away with another.”
Some borrowers, like Linda Hilton, 76, of Apache Junction, Arizona, have previously endured garnishment and expect to do so again. While she plans to manage, she acknowledged that trips to visit family or eat out may now be unaffordable. “There won’t be any travel. There won’t be any frills,” she said.
Meanwhile, President Donald Trump has signed an executive order calling for the dismantling of the Department of Education, which has further complicated communications for borrowers. Education Secretary Linda McMahon defended the move, calling resumed collections “necessary for debtors’ financial health and the nation’s economic outlook.”
Even some supporters of Trump have voiced concerns. Randall Countryman, 55, of Bonita, California, said while he opposed sweeping debt forgiveness under Biden, he wishes the government made more case-specific decisions. After accruing debt while in prison and attending the University of Phoenix, Countryman never completed his degree. He now depends on his wife’s Social Security and assistance from his mother-in-law. “I kind of wish I never went to school in the first place,” he said.
