Older student-loan borrowers are at risk of losing a chunk of their Social Security. There's a new bill to prevent that.

Student-loan borrowers could lose their Social Security checks if they autumn down connected their indebtedness payments. Democratic lawmakers want to put an extremity to that practice.

On Monday, Sens. Bernie Sanders, Elizabeth Warren, and Ed Markey introduced a measure to forestall older student-loan borrowers and borrowers pinch disabilities from facing Social Security garnishment if they default connected their payments.

A truth expanse of the authorities reviewed by Business Insider said that the measure would prohibit the Treasury from seizing Social Security payments, including Social Security Disability Insurance, and protect those borrowers from "unnecessary forced collections."

Sanders said successful a connection that "in the richest state successful the history of the world, nary elder should person their Social Security payments taken distant from them to salary backmost student debt."

"This is particularly existent erstwhile seniors passim the state already cannot spend the skyrocketing value of healthcare, medicine drugs, groceries and housing," Sanders said. "Congress must walk this legislation."

The authorities comes arsenic student-loan defaults are astatine a grounds high. Over 9 cardinal borrowers were successful default arsenic of March, according to the latest Education Department data, which happens erstwhile a borrower has missed payments for 270 days.

The New York Federal Reserve's latest family indebtedness study showed that student-loan delinquencies stood astatine 10.6% successful the 2nd 4th of 2026 — up from 10.3% successful the first quarter. Pre-pandemic delinquency rates were astir 11%, and researchers said the latest information showed that delinquency is stabilizing. Yet researchers said that number could emergence again owed to the elimination of the Biden-era SAVE repayment plan, which gave borrowers affordable payments and a shorter timeline to indebtedness relief.

Weeks aft announcing it would beryllium resuming involuntary collections connected defaulted student loans successful May 2025, President Donald Trump's management announced it was pausing Social Security garnishment. The move was intended to thief the management instrumentality repayment changes, and it's unclear if continuing the region would summation bipartisan support. In January, the Education Department announced it would besides region costs garnishments to let the section much clip to instrumentality Trump's student-loan repayment changes.

The Treasury Department tin withhold up to 15% of a student-loan borrower's Social Security check, up to 15% of their national salary, and each of a national taxation refund.

The management has not specified erstwhile the pauses will lift. It's successful the process of transitioning complete 7 cardinal borrowers disconnected the SAVE plan, and galore of those borrowers person said they're facing higher bills and are worried astir the consequences of defaulting, including losing their wages and national benefits.

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