Sun May 18 03:30:00 UTC 2025: ## Social Security Benefits to Face Garnishment for Defaulted Student Loans Starting Next Month
**Washington, D.C.** – Starting next month, Social Security recipients with defaulted federal student loans will see up to 15% of their benefits garnished, marking the end of a pandemic-era pause on the Treasury Offset Program (TOP). The Trump administration initially suspended TOP in 2020, and the Biden administration did not reinstate it.
The Department of Education (DOE) announced on May 5th that approximately 195,000 borrowers in default have already received 30-day notices from the Treasury Department regarding the impending offsets. The first impacted benefit checks are scheduled for early June, following the mandatory notice period. By the end of the summer, the DOE expects all 5.3 million defaulted borrowers to receive similar notifications.
TOP is a collections process that allows the federal government to withhold funds from various federal payments, including Social Security benefits, to repay outstanding debts. While up to 15% can be garnished, beneficiaries’ checks cannot be reduced below $750.
According to CNBC, around 2.9 million individuals aged 62 or older owe federal student loans. A recent Consumer Financial Protection Bureau report estimated that forced collections could affect approximately 452,000 borrowers in this age group, potentially pushing them into poverty. The report warns that this could undermine the purpose of the Social Security program, which aims to provide financial security to retirees and disabled individuals.
Recipients receiving TOP notices also receive information on how to challenge the garnishment if they can demonstrate financial hardship or have a pending loan discharge application. The 15% offset is calculated from the gross benefit amount before any other deductions, impacting both retirement and disability Social Security benefits.
First Piper 