Trump's Education Department Pauses Social Security Change

Published: Tuesday, June 3, 2025 at 7:49 am

Trump Administration Halts Social Security Garnishment for Student Loans

The Department of Education, under the Trump administration, has temporarily stopped garnishing Social Security benefits to collect on defaulted federal student loans. This pause comes after the department resumed involuntary collections on these loans in May, impacting potentially hundreds of thousands of older borrowers.

A spokesperson confirmed the department "has put a pause on any future Social Security offsets." This is a significant development, as the government can typically withhold up to 15% of Social Security benefits to recover defaulted student loan debt. For those receiving the average monthly payment of $1,976, this could mean a loss of nearly $300 per month.

The decision to halt garnishments is particularly relevant given the potential impact on older borrowers. A January report from the Consumer Financial Protection Bureau estimated that over 450,000 individuals aged 62 and older were in default on their student loans this year.

While Social Security garnishments are paused, the Education Department indicated that other collection methods, such as wage garnishment and federal tax refund offsets, will continue. Borrowers facing these collections will receive a notice of intent to offset, informing them of the impending action and its potential impact on their credit. The department also plans to offer affordable loan repayment options to help borrowers regain good standing.

This move reflects a commitment to protecting Social Security recipients, who often rely on fixed incomes. The department also aims to address the broader issue of student loan debt and the need for a more transparent and accountable higher education finance system.

Keywords: Student loans, Social Security, garnishment, Department of Education, Trump administration, defaulted loans, loan repayment, older borrowers, federal student loans, debt collection, student loan debt, Treasury Offset Program, loan forgiveness

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