The U.S. Department of Education has announced that it will not be garnishing Social Security checks to recover unpaid federal student loans. This decision comes after the department restarted collections on defaulted loans in May 2025, following a suspension due to the COVID-19 pandemic.
According to a statement shared with Newsweek, the Education Department emphasized that no Social Security benefits have been offset since collections resumed and that future offsets have been temporarily paused.
The department did not provide specific details on the timing or extent of its next steps, but stated that it would soon reach out to borrowers about repayment options.
Why the Pause Matters
In May, the Education Department resumed involuntary collections on defaulted federal student loans for the first time since March 2020.
This raised concerns for older borrowers, particularly those aged 62 and older, who are at risk of having their Social Security benefits garnished to pay off these loans.
According to the Consumer Financial Protection Bureau, approximately 452,000 individuals aged 62 or older were facing the prospect of having their Social Security checks affected by the restart of loan collections.
Understanding Social Security Offsets
Under the Treasury Offset Program, the federal government can collect delinquent debts by withholding up to 15% of a person’s Social Security benefits.
However, garnishments cannot reduce monthly benefits below $750. For example, if a Social Security beneficiary with an average monthly payment of $1,976 had 15% garnished, it would result in a $296.40 deduction per month.
The Department also clarified that
The Department has not offset any Social Security benefits since restarting collections on May 5, and has put a pause on any future Social Security offsets – according to a spokesperson.
The department is expected to begin proactive outreach in the coming weeks,
To help recipients understand affordable loan repayment options and help them back into good standing.”
What the Education Department Is Doing Next
The Education Department has indicated that it will begin proactive outreach in the coming weeks to help borrowers get back on track with affordable repayment options.
A spokesperson explained that the pause on Social Security garnishments will allow the department to focus on finding solutions for borrowers to bring their loans back into good standing.
In the statement, the Education Department emphasized that the Trump Administration is committed to protecting Social Security recipients, especially those who rely on a fixed income. Secretary of Education Linda McMahon commented on May 5, stating,
As we begin to help defaulted borrowers back into repayment, we must also fix a broken higher education finance system that has put upward pressure on tuition rates without ensuring that colleges and universities are delivering a high-value degree to students.
She further explained,
For too long, insufficient transparency and accountability structures have allowed U.S. universities to saddle students with enormous debt loads without paying enough attention to whether their own graduates are truly prepared to succeed in the labor market.
The Context of the Decision
The practice of garnishing Social Security benefits to collect defaulted student loans is not new. It has been in place for over two decades. However, it had been suspended during the COVID-19 pandemic and the remainder of the previous administration’s tenure. Tom O’Hare, a holistic college adviser at Get College Going, told Newsweek in May that
These debt recovery practices are not new and have been in use for over two decades.
