Millions of older Americans are once again at risk of having their Social Security benefits garnished as the federal government resumes collections on defaulted student loans.
Loan collections restart after pandemic pause
The Department of Education announced in May that it is resuming involuntary collections for federal student loan debt, including garnishing wages, tax refunds, and Social Security payments. These collections had been paused for five years during the pandemic.
For retirees like Christine Farro, a 73-year-old former child welfare worker in California, the move could mean losing a critical portion of already limited monthly income.
“I worked ridiculous hours… but I could never pay it off,” Farro said. Despite consolidating her loans and making payments, interest ballooned her debt to over $250,000. She now expects the garnishment of her Social Security to resume.
Thousands affected by garnishment
According to the Consumer Financial Protection Bureau (CFPB), an estimated 452,000 people aged 62 and older had student loans in default in 2025. These borrowers are now subject to forced collection methods, including garnishment of Social Security benefits.
The number of Social Security recipients facing garnishment has soared—up 3,000% from 6,200 in 2001 to over 192,000 in 2019.
Many of these borrowers are not recent graduates but individuals who took out loans decades ago, often to improve their career prospects or support their children’s education.
Debt persists long after retirement
Debbie McIntyre, a 62-year-old adult education teacher from Kentucky, faces garnishment while supporting her disabled husband on a tight income.
“I don’t know what more I can do,” she said. “I’ll never get out of this hole.”
Bankruptcy offers little relief. Federal student loans are not easily discharged, making them uniquely burdensome compared to other forms of debt.
Many older people have already repaid their principal—sometimes multiple times—but still owe significant amounts due to compounding interest and penalties.
How much can be garnished?
By law, the federal government can withhold a portion of Social Security benefits to collect on student loan debt. Only $750 per month is protected from garnishment—placing many older people below the federal poverty line.
“We’re basically providing people with federal benefits with one hand and taking them away with another,” said Sarah Sattelmeyer of New America.
For those affected, the financial strain can be severe. According to the Debt Collective, some older people are skipping meals, splitting medications, or cashing out retirement savings to survive.
Political response and legal uncertainty
President Donald Trump’s administration has greenlit the collections. Education Secretary Linda McMahon called the move necessary “for the sake of [debtors’] own financial health and our nation’s economic outlook.”
However, mass layoffs at the Department of Education have created difficulties for borrowers seeking assistance or clarification about their loans.
Meanwhile, Trump’s executive order to dismantle the Education Department has raised concerns about borrower protections and program oversight.
A growing crisis for older folks
Student loan debt among people aged 60 and older has ballooned to $125 billion, according to the National Consumer Law Center—a sixfold increase over the last two decades.
Older borrowers like Linda Hilton, 76, expect to survive the renewed garnishment but at a cost: “There won’t be any travel. There won’t be any frills.”
Randall Countryman, 55, who began his education while incarcerated and never completed his degree, says he’s unsure how to pay back what he owes while living off his wife’s Social Security benefits.
“I kind of wish I never went to school in the first place,” he said.
Key takeaways
- Social Security garnishment for student loans resumed in May 2025.
- 452,000 older people are at risk of having benefits withheld.
- Garnishment leaves some below the poverty line, with only $750/month protected.
- Many older people owe more now than when they borrowed, due to decades of interest.
- Advocates call for case-by-case debt relief and protections for vulnerable retirees.
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