Social Security Update—Proposed Change Would Protect Student Loan Borrowers
Summary
Senator Bernie Sanders has proposed a new law to stop the federal government from taking Social Security money to pay back unpaid student loans. This change would protect older Americans and people with disabilities who depend on Social Security from losing part of their benefits due to student loan debt.Key Facts
- The proposed law is called the Stop Social Security Garnishment Act.
- It would stop the government from deducting money from Social Security payments to collect defaulted student loans.
- Over 3 million people over 62 years old have federal student loan debt.
- Many Social Security recipients with student loans rely on this money for basic living needs like food, medicine, and housing.
- Currently, the government can take up to 15% of monthly Social Security payments to pay defaulted student loans.
- The bill would also protect Social Security Disability Insurance (SSDI) benefits from being garnished.
- Some borrowers lose access to medical care or prescriptions when their Social Security payments are reduced.
- The Trump administration has paused some student loan collections from Social Security, but this law aims to make that protection permanent.
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