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There are millions of older Americans today who would not be able to get by without their monthly Social Security checks. And while the average retirement benefit today is only $2,071, it’s somehow just enough income for some seniors to live on.
But it’s not a given that every Social Security recipient will get their monthly check in full. Working while collecting Social Security, for example, could result in withheld benefits for exceeding the program’s earnings test thresholds. The earnings test applies to Social Security recipients who have not yet reached their full retirement age.
There are also plenty of seniors at risk of having their Social Security benefits garnished. Thankfully, not so long ago, some good news came through in that regard.
Social Security garnishments for defaulted federal loans are paused — for now
Social Security is facing a major funding shortfall, so the Trump administration has been fairly aggressive in trying to preserve the program’s financial resources. Now, seniors risk having a portion of their benefits garnished due to factors that include:
- Overpayments
- Back taxes
- Overdue child and spousal support
Generally speaking, defaulting on federal student loans is another reason why a given Social Security check may be garnished. But last year, the Trump administration threw seniors in that boat a bit of a bone.
In mid-2025, the Department of Education announced that it would pause Social Security garnishments on delinquent student loans temporarily. However, the DOE made it clear that this was merely a pause, and not a new policy. As such, it’s not unreasonable to assume that at some point soon, Social Security benefits will be subject to garnishment for unpaid federal student loans.
That said, all isn’t lost. Federal student loan borrowers commonly enjoy more protections than those with private loans. And seniors who can’t keep up with their payments can apply for a hardship exemption with the DOE that may keep their Social Security checks safe.
Anyone in that boat would be well served to do that sooner rather than later, before Social Security garnishment for unpaid federal loans resumes.
Seniors should be careful with student loans
Although some seniors have student loan debt from their own education, many older Americans still carry student loans because they tried to borrow for a child or grandchild’s degree, or because they co-signed a loan (this usually applies to private student loans, as most federal student loans do not require a credit check and therefore don’t require co-signers).
It’s important that seniors tread lightly when it comes to student debt and recognize the dangers of taking it on later in life, such as to help another family member finance an education.
The good news is that Social Security benefits cannot be garnished for past-due private student loans. Private lenders can sue seniors who are in default to try to get repaid, but Social Security benefits are generally exempt in that situation.
It’s only federal student loans that open the door to Social Security garnishment in the event of delinquency. And that’s something seniors should prepare for, despite having gotten a temporary reprieve.