Senators introduce bill to stop Social Security garnishment for older student-loan borrowers

Senators Bernie Sanders, Elizabeth Warren and Ed Markey unveiled a bill that would forbid the Treasury Department from garnishing Social Security checks, including Social Security Disability Insurance, for borrowers who fall behind on student-loan payments. The proposal targets older borrowers and those with disabilities, aiming to shield them from what sponsors call “unnecessary forced collections.” It arrives as the Education Department reports over 9 million borrowers in default and the New York Federal Reserve notes a 10.6% delinquency rate in the second quarter of 2026, slightly above the first quarter figure.

The move follows a pause on Social Security garnishment announced by the Trump administration after it resumed collections on defaulted loans in May 2025, though the pause’s end date remains unclear. Advocates highlight that seniors are already burdened by soaring healthcare, prescription, grocery and housing costs, and should not have benefits diverted to repay student debt. The bill seeks to protect vulnerable borrowers while the Treasury continues to withhold up to 15% of Social Security, federal salaries and tax refunds for defaulted loans.