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

Updated on July 5, 2025

Quick Facts

Social Security garnishments for defaulted federal student loans are temporarily paused as of June 3, 2025, but may resume later this summer. Other federal debt collection activities remain unaffected.
Federal student loans can trigger Social Security garnishment through the Treasury Offset Program, but private student loans cannot directly garnish Social Security benefits.
Federal garnishment is capped at 15% of monthly Social Security retirement and disability payments, protecting a minimum of $750 monthly. Supplemental Security Income (SSI) and VA disability benefits cannot be garnished.

The federal government can garnish Social Security benefits to recover defaulted federal student loans. This authority comes from the Debt Collection Improvement Act (DCIA) (PDF) and is exercised through the Treasury Offset Program, managed by the U.S. Department of Treasury.

Federal garnishment applies exclusively to federal student loans that are in default, typically after 270 days of non-payment. Once loans default, the Department of Education can initiate garnishment, withholding a portion of the borrower’s monthly Social Security payment until the debt is resolved.

Private lenders cannot directly garnish Social Security benefits. Instead, they must sue borrowers to enforce repayment. Even then, Social Security income generally remains protected.

According to a recent report from the Consumer Financial Protection Bureau (CFPB), garnishment severely impacts Social Security recipients. Approximately 50% of affected beneficiaries skipped necessary medical care due to reduced income, and over 90% experienced significant financial hardship.

Federal student loan garnishments of Social Security benefits are limited by law. The U.S. government, through the Social Security Administration (SSA), can garnish up to 15% of your monthly Social Security retirement, disability, or survivor benefits if you’re in default on federal student loans.

Exempt Benefits

The following Social Security and related benefits are fully protected and cannot be garnished:

Supplemental Security Income (SSI)
Veterans Affairs (VA) disability benefits

However, survivor benefits, such as those received by widows, widowers, or dependents of deceased workers, can be garnished similarly to retirement or disability benefits.

As of mid-2025, garnishments, including those from survivor benefits, are temporarily paused but may resume later this summer.

Minimum Protected Amount

Under federal regulations, a minimum of $750 of your monthly Social Security benefit is protected from garnishment. Unfortunately, this protection was set in 1996 and has not been adjusted since, placing it significantly below the current federal poverty threshold.

Because of this, garnishment frequently pushes beneficiaries below the poverty line, causing severe financial hardship, particularly for seniors who rely primarily on Social Security.

Example: If your monthly Social Security benefit is $1,000, the government can withhold up to $150 (15%), leaving you with $850, which is already below the federal poverty line.

Related: SSDI and Student Loans

The Social Security garnishment process begins when the U.S. Department of Education refers defaulted federal student loans to the Treasury Department. The Treasury then initiates garnishment through the TOP.

Once garnishment is initiated, Treasury sends the borrower an official Notice of Intent. This notice outlines the garnishment plan, explains borrower rights, and describes available hardship exemptions or alternatives for repayment.

Upon receiving the notice, borrowers have 30 days to respond. During this period, they can dispute the validity of the debt, request a hardship exemption to reduce or stop the garnishment, or negotiate alternative repayment arrangements directly with the Department of Education.

If the borrower does not resolve the issue within the 30-day response window, garnishment automatically starts. The Treasury begins withholding the designated garnishment amount from the borrower’s monthly Social Security payments.

The garnishment continues monthly until one of the following occurs:

The defaulted debt is paid in full.
The borrower arranges an alternative repayment solution.
The borrower exits default through rehabilitation or consolidation.

Federal student loan borrowers facing garnishment have several options to get out of student loan default fast and to stop or proactively prevent reductions to their Social Security benefits:

Loan Rehabilitation

Loan rehabilitation stops Social Security garnishment permanently, but only after you complete the entire rehabilitation process. To rehabilitate a defaulted federal student loan, you’ll need to make nine monthly payments within a 10-month period. These payments are based on your discretionary income and family size, making them affordable for most borrowers.

Once you’re done, garnishment ends, the default is removed from your credit report, and you’ll regain access to repayment plans and federal student aid. Currently, you can rehabilitate a defaulted loan only once, but Congress is considering legislation that would give borrowers a second chance (PDF). Until then, make sure you stay current with your payments after rehabilitation.

Federal Direct Consolidation

Federal Direct Consolidation immediately stops Social Security garnishment by consolidating one or more defaulted loans into a new loan in good standing. However, consolidation is not available if you’re currently facing active wage garnishment from employment.

To qualify for consolidation, borrowers must either agree to enroll in an Income-Driven Repayment (IDR) plan — federal repayment plans that calculate your monthly payments based on your income and family size — or make three voluntary payments beforehand. While consolidation quickly stops Social Security garnishment, it does not remove the default notation from credit reports.

Total and Permanent Disability Discharge

A Total and Permanent Disability (TPD) discharge permanently eliminates your federal student loan debt if you have a total and permanent disability. Once your loans are discharged, all collection activities — including garnishment of Social Security benefits — must stop immediately.

Initiating a TPD application typically pauses collections temporarily while your application is under review. Upon approval, you gain permanent protection from garnishment.

Eligible borrowers facing garnishment due to disability should strongly consider applying for a TPD discharge to safeguard their Social Security benefits.

Bankruptcy Discharge

Filing bankruptcy provides immediate but temporary relief from Social Security garnishment through the court’s automatic stay, which halts collection activity during the bankruptcy case. To achieve permanent relief, borrowers must file an adversary proceeding, a special lawsuit within the bankruptcy process, asking the court to discharge student loan debt due to financial hardship. Bankruptcy discharge is particularly suitable for seniors and retirees experiencing ongoing financial hardship and limited income prospects.

Related:

Income-Driven Repayment Plans as a Long-term Strategy

Income-Driven Repayment plans are a valuable proactive tool for retirees and seniors concerned about default and garnishment risk. These federal repayment plans calculate monthly payments based on income, not loan balances. Seniors living on fixed incomes, such as Social Security, often qualify for monthly payments as low as $0, depending on how they file taxes. Additionally, IDR plans offer loan forgiveness after 20 to 25 years of qualifying payments.

Borrowers currently in default must first use rehabilitation or consolidation to regain good standing before enrolling in an IDR plan. Once enrolled, IDR helps borrowers avoid future defaults, protecting their Social Security benefits from garnishment long-term.

FAQs

Does Social Security garnishment automatically stop at a certain age or after repaying part of the debt?

No. There is no automatic age limit or repayment threshold that stops Social Security garnishment. Garnishment continues indefinitely until the entire defaulted student loan debt, including interest and fees, is fully repaid, forgiven, discharged, or otherwise resolved through rehabilitation or consolidation.

Is Congress considering legislation to protect Social Security benefits from garnishment due to student loans?

Yes. In May 2025, lawmakers introduced the Ending Administrative Wage Garnishment Act of 2025, which seeks to permanently halt garnishment of Social Security checks, wages, and tax refunds for student loan debt. This bill, if passed, would protect Social Security recipients from having benefits seized to repay defaulted federal student loans.