Can Social Security Be Garnished for Student Loans? [2025]

• Federal student loan default can lead to Social Security garnishment. The government is allowed to garnish up to 15% of your retirement or disability benefits if you have defaulted federal student loan debt.

• SSI (Supplemental Security Income) is protected from student loan garnishment. Unlike other Social Security benefits, SSI payments cannot be taken to repay defaulted federal student loans.

• Garnishment of Social Security requires action to stop. You must actively address the student loan default through options like rehabilitation, consolidation, or proving hardship to prevent or end the garnishment of your benefits.

Student loans can garnish your Social Security check starting May 5, 2025, according to the Education Department.

After nearly five years of pandemic relief, federal collections have resumed for borrowers with defaulted student loans. If your loans remain in default, the government can garnish your wages, seize your tax returns, and reduce your monthly benefits through a Social Security offset—even if you’re retired or receiving disability payments (SSDI).

Many older student loan borrowers and other Social Security recipients worry they’ll lose critical retirement income each month. This garnishment is entirely legal and will continue indefinitely unless you act to stop it.

But Supplemental Security Income (SSI), a needs-based benefit, is protected from garnishment. Despite this protection, collection agencies sometimes send intimidating letters, hoping you don’t know your rights or won’t challenge them.

Federal vs. Private Student Loans

Not all student loans are treated the same when it comes to Social Security garnishment. Federal student loans have clear legal authority to garnish Social Security monthly payments if you default. This includes loans held by the Education Department, such as Direct Loans and federally backed loans issued before 2010.

On the other hand, private student loans, including those from lenders like Sallie Mae, generally cannot garnish Social Security benefits directly. Private lenders lack access to federal collection tools like Social Security offsets. But private lenders can pursue other legal collection actions, such as lawsuits or bank account garnishments, potentially affecting other income or assets.

How Does Social Security Garnishment Work?

Social Security garnishment for defaulted federal student loans happens through the Treasury Offset Program (TOP). Once your loan servicer certifies your loans as defaulted, the Education Department can refer your debt to the Treasury Department to offset federal payments, including your monthly checks from the Social Security Administration.

The government can garnish up to 15% of your Social Security benefit, but it must leave beneficiaries at least $750 per month (as of 2025). Before any garnishment begins, you’ll receive a formal notification from the Treasury explaining the amount to be withheld and outlining the process and your rights to challenge or appeal the garnishment.

What Does Garnishment Mean for Your Social Security Check?

In practical terms, Social Security garnishment means your monthly benefits will shrink, sometimes significantly. For example, if your monthly retirement or SSDI benefit is $1,500, the government could take up to $225 per month, leaving you with just $1,275.

This reduction continues month after month until the debt is resolved, significantly impacting your monthly budget and ability to cover essential expenses such as rent, utilities, food, and healthcare.

As of June 2025, the government has hit pause on taking Social Security checks from borrowers in student loan default. That means if you’re behind on federal loans and getting benefits, your payments won’t be garnished, at least for now.

Roughly 450,000 older borrowers rely on Social Security and are in default. The pause is meant to give them more time to get out of default or switch into an affordable plan.

There’s no end date yet. The Department of Education hasn’t said when (or if) Social Security offsets will resume. But they are still collecting in other ways, like wage garnishment, and plan to ramp that up later this year.

If that’s you, use this time wisely. Consolidating or starting loan rehabilitation can stop garnishment before it starts again.

 

Not all Social Security benefits are treated equally when it comes to garnishment for federal student loan debt. The rules vary significantly depending on which benefit you’re eligible for:

• Retirement

• Disability (SSDI)

• Supplemental income (SSI)

• Related benefits like Medicare premiums

Here’s a breakdown of what you can expect:

Social Security Retirement Benefits

If you receive Social Security retirement benefits, these payments can be garnished due to defaulted federal student loan debt. Many borrowers entering old age are particularly vulnerable, as garnishment can reduce essential monthly income. The government can garnish up to 15% of your retirement benefits, subject to a protected minimum amount ($750 per month as of 2025).

Social Security Disability Insurance (SSDI)

Like retirement benefits, Social Security Disability Insurance payments can also be garnished due to defaulted federal student loan debt. For disabled beneficiaries—including younger borrowers—who rely heavily on SSDI, garnishment can pose significant financial hardship. SSDI garnishments follow the same guidelines as retirement benefits, capped at 15% of the monthly benefit, with a protected minimum remaining at $750.

Supplemental Security Income (SSI)

Unlike retirement or disability benefits, Supplemental Security Income (a needs-based benefit for individuals with limited income and resources) is generally protected from garnishment. Federal law explicitly exempts SSI from garnishment related to student loan default. SSI recipients may receive aggressive collection letters or calls, but these benefits cannot be legally garnished.

Other Related Benefits (Medicare Premiums)

Indirectly, garnishment can affect your finances by reducing your overall Social Security check, potentially making it harder to afford related expenses such as Medicare premiums deducted from your benefits. But Medicare benefits themselves are not directly garnishable for student loan debt.

What if I Receive Both SSI and SSDI?

If you receive both SSI and SSDI, only your SSDI benefits can be garnished. Your SSI payments remain completely protected by federal law. But you might need to provide documentation (such as your benefit verification letter from SSA.gov) clearly showing which portion of your income is SSI to ensure the garnishment doesn’t exceed what’s legally allowed.

What Other Consequences Can Student Loan Default Have?

Social Security garnishment isn’t the only consequence of defaulting on federal student loans. Borrowers may also face damaged credit scores and loss of other funds, such as through wage garnishments and tax refund offsets. See what really happens when you default on student loans in our detailed guide covering every major consequence.

Are Seniors or People with Serious Health Conditions Protected?

Unfortunately, there are no specific protections solely based on age or health conditions. Even if you’re an older adult or senior or are dealing with a serious illness, like being diagnosed with lung cancer at age 68, your Social Security retirement or SSDI benefits can still be garnished for federal student loans. But certain relief options, such as applying for a permanent disability discharge, could help resolve the underlying debt.

Can My Spouse’s Social Security or SSI Be Affected?

Your defaulted student loans generally won’t affect your spouse’s Social Security or Supplemental Security Income. SSI specifically is protected as a need-based benefit, even for spouses. But financial complexities, such as joint bank accounts or IRS liens related to student loan debt, can indirectly impact your household finances. Learn how your student loan debt could affect your spouse’s wages or assets, especially in cases of garnishment or tax refund offsets tied to joint filings.

Can Social Security Be Garnished If I Live Abroad?

Living abroad doesn’t protect your Social Security benefits from garnishment for defaulted federal student loans. The Treasury Offset Program can still apply, and your monthly benefit payments can be reduced, no matter where you reside. Leaving the country won’t erase your student loan debt, and the government can still pursue collections, even overseas.

If you’re facing garnishment of your Social Security benefits due to defaulted student loans, acting quickly can stop or significantly reduce the impact. Here’s what you can do immediately and in the long-term:

Claiming Exemptions or Financial Hardship

Federal law provides a minimum protected amount ($750 monthly, as of 2025), ensuring your Social Security payment doesn’t drop below this threshold. If garnishment would cause severe financial hardship, you can request an exemption or reduction through the Treasury Offset Program. You’ll need detailed documentation showing your financial situation, expenses, and hardship.

Getting Out of Default Permanently: Rehabilitation or Consolidation

The best long-term approach is resolving the default entirely, which immediately stops garnishment:

• Loan Rehabilitation: Make nine monthly payments based on your income. Completing rehabilitation removes the default from your credit report, ends garnishment, and makes you eligible again for forgiveness programs like income-driven repayment or Public Service Loan Forgiveness. Learn how the student loan rehabilitation program works.

• Loan Consolidation: Consolidating your defaulted loans into a new Direct Consolidation Loan immediately removes the default status and stops garnishment. However, consolidation may erase credit for previous payments toward forgiveness or discharge programs. See when to use consolidation to get out of default.

Your monthly payment after you graduate can be as low as $0 using one of the available income-driven repayment plans. For a full breakdown of your options, check out our guide to getting student loans out of default.

Disability Discharge or Forgiveness Programs

If you have a disability, consider applying for a permanent disability discharge, which completely cancels your federal student loans. Additionally, Public Service Loan Forgiveness or income-driven repayment forgiveness might be available if you’re eligible. Before you consolidate or rehabilitate your loans, carefully check how it could affect your qualification for these programs.

Bankruptcy as a Lasting Solution

Another effective—but complex—option is filing bankruptcy. Although bankruptcy doesn’t automatically discharge student loans, it immediately stops garnishment through a court order called the automatic stay. You may eventually discharge your student loans by demonstrating “undue hardship,” which has become more attainable under recent changes introduced by the Biden administration.

Speak with an experienced bankruptcy attorney to determine if this approach makes sense for your situation.

If you’ve missed payments on your federal loans, the federal government can garnish your Social Security benefits, including SSDI and retirement payments. This places many older Americans and retirees at serious financial risk, potentially leaving them struggling to cover basic living expenses. The government can also seize your tax refunds and continue collections indefinitely unless you take action.

Only Supplemental Security Income is fully protected, but collection agencies may still pressure you to pay, hoping you aren’t aware of your rights.

The key is to act early to manage your student loan situation effectively. Whether your goal is to stop garnishment, confirm your benefit protections, or determine the best way to repay student loans (including options like loan forgiveness or disability discharge), clear guidance is available.

Not sure where to start?

Book a call with our student loan expert.

We’ll help you verify your benefits, assess your options, and stop collections before they take more of your money.

Related Readings:

• Do Student Loans Affect Your Social Security Benefits

• Can 401k be Garnished for Student Loans

• Can Student Loans Garnish Bank Accounts

• Federal Student Loan Collections Restart Announcement (May 2025). U.S. Department of Education Press Release

• Treasury Offset Program (TOP) Rules and Requirements Fact Sheet. U.S. Treasury Fiscal Service

• Debt Collection Improvement Act (DCIA) of 1996 Overview. Public Law 104-134 – Treasury Debt Management

• Regulations Governing Centralized Offset of Federal Payments (31 CFR § 285.5). Cornell Law School – Legal Information Institute

• Social Security offsets increased from $16.2 million in 2001 to $429.7 million in 2019. Despite this exponential increase, most funds collected went to interest, fees, and Treasury costs—not reducing borrowers’ principal debts significantly. Consumer Financial Protection Bureau – Issue Spotlight

• Social Security garnishments due to student loan defaults rose by over 3,000% from 2001 to 2019 (6,200 to 192,300 beneficiaries). Older borrowers increasingly represent a larger share of the federal student loan portfolio, with borrowers aged 62+ increasing by 59% between 2017 and 2023. Consumer Financial Protection Bureau – Issue Spotlight