Sen. Bernie Sanders, I-Vt., is proposing legislation that would prevent seniors from having their Social Security payments withheld due to unpaid federal student loan debt.
Sanders announced the proposal on Monday and plans to formally introduce the Stop Social Security Garnishment Act when the Senate returns next month. The bill is also supported by Democratic Sens. Elizabeth Warren and Ed Markey of Massachusetts.
About 9.5 million borrowers are in default on federal student loans, according to an Associated Press analysis of federal data through March. Sanders’ office said nearly one in four borrowers cannot repay their loans and could face wage or Social Security benefit seizures.
Student Loan Collections Remain Paused
The proposal comes as the Trump administration has paused involuntary collections for borrowers who have defaulted on federal student loans.
In June 2025, the administration said it would not reduce Social Security benefits for affected borrowers, reversing an earlier plan to resume collection activity after pandemic-era protections ended.
In January, the Education Department announced that it would delay wage garnishment and other involuntary collections while implementing new federal student loan repayment options created through President Donald Trump’s legislation.
The reforms reduced the number of repayment plans available and introduced two new repayment options beginning July 1.
The Education Department said the delay in collections could give borrowers in default time to rehabilitate their loans through repayment programs and return their loans to good standing.
Impact on Older Borrowers
Sanders’ proposal would prevent Social Security retirement and disability benefits from being reduced to repay outstanding student loan debt.
The proposal would protect older borrowers with defaulted student loans from forced collection of their benefit payments, allowing them to continue covering essential expenses such as healthcare, medicine and food.
Sanders said seniors should not have their Social Security payments taken to repay student debt, particularly as many older Americans face rising costs for healthcare, prescription drugs, groceries and housing.
According to second-quarter Education Department data, about 9.6 million student loan borrowers are age 50 or older, with approximately $457 billion in outstanding student loan debt.
