Sen. Bernie Sanders announced August 17 that he will introduce the Stop Social Security Garnishment Act, legislation to prevent the government from withholding Social Security payments to repay student loan debt. The bill comes as nearly nine million Americans are in default on federal student loans, according to Sanders’ office.
Joining Sanders as co-sponsors are Sens. Elizabeth Warren of Massachusetts and Ed Markey of Massachusetts. The legislation would prohibit the federal government from garnishing any Social Security payments, including Social Security Disability Insurance, from older adults and individuals with disabilities to pay back student loan debt.
The timing reflects an escalating crisis in student loan defaults. According to Sanders’ announcement, over nine million Americans are now in default on their student loans—nearly 1 in 4 student loan borrowers—putting them at risk of having their wages or Social Security payments seized to repay outstanding debt. The bill is endorsed by organizations including the American Federation of Teachers, Protect Borrowers, the Student Debt Crisis Center, and the Alliance for Retired Americans.
Currently, federal law allows the government to withhold up to 15 percent of a Social Security beneficiary’s monthly benefits to repay defaulted federal student loans, though the amount cannot reduce benefits below $750 per month. Sanders argues this policy creates hardship for seniors already struggling with healthcare costs, prescription drugs, groceries, and housing. More than 1 in 3 Social Security recipients with student loans are reliant on their benefits to make ends meet, according to the bill’s materials.
The impact on beneficiaries has been severe. Half of Social Security recipients who had a check garnished because of defaulted student loans reported skipping a doctor’s visit or being unable to obtain a prescription they needed due to cost, Sanders’ office stated.
The Broader Student Loan Default Crisis
The bill emerges from what Sanders describes as a record-breaking default crisis exacerbated by what he calls Trump’s “Big Beautiful Bill,” which made what he characterizes as the largest cuts to education in history. The default rate has surged as borrowers struggle to manage loan repayment amid economic pressures.
The practice of offsetting Social Security benefits for student loan debt is not new. According to the Consumer Finance Office’s 2025 research, between 2001 and 2019, the number of Social Security beneficiaries experiencing reduced benefits due to forced collection increased significantly. A 2016 Government Accountability Office study found that for older borrowers subject to offset for the first time, about 43 percent had held their student loans for 20 years or longer, suggesting many had borrowed decades earlier when education costs and income dynamics were vastly different.
In June 2025, the Trump administration paused its plans to offset Social Security benefits for defaulted student loan borrowers following pressure from borrower advocates. However, Sanders’ bill seeks to make permanent protection a matter of law rather than administrative discretion, preventing future reversals of policy.
Sources
- Senator Bernie Sanders Official Press Release — announcement of the Stop Social Security Garnishment Act, co-sponsors, bill details, and endorsements
- CNBC — confirmation of Sanders’ announcement on August 17, 2026
- Business Insider — coverage of the bill and its aim to protect defaulted borrowers
- Forbes Advisor — details on the Stop Social Security Wage Garnishment Act of 2026
- Consumer Finance Bureau — historical data on Social Security offsets and defaulted student loans
- Government Accountability Office — 2016 study on borrowers subject to Social Security offset
