Social Security Garnishment for Student Loans: Retirement Savings at Risk
The Trump administration’s resumption of student loan collections has resulted in the garnishment of Social Security benefits for over 450,000 defaulted borrowers aged 62 and older, beginning as early as June. While up to 15% of benefits may be offset, leaving a minimum of $750, borrowers can challenge garnishments by proving financial hardship or pursuing loan discharge options, such as a Total and Permanent Disability discharge. Alternative solutions include getting current on loans through income-driven repayment plans or utilizing available resources to supplement income. The 15% cap applies to all Social Security benefits, including retirement and disability payments.
John Q. Hosedrinker