Senator Bernie Sanders announced a new bill aimed at protecting seniors from having their Social Security checks garnished due to unpaid federal student loan debt. The Stop Social Security Garnishment Act, which will be formally introduced when the Senate reconvenes next month, is co-sponsored by Senators Elizabeth Warren and Ed Markey.
Currently, approximately 9.5 million borrowers are in default on their student loans, with nearly 25% unable to repay their loans, putting them at risk of wage or Social Security garnishment. This proposal comes in the context of the Trump administration's recent decision to pause involuntary collections for borrowers in default, reversing earlier plans to resume such actions.
Sanders emphasized that no senior should have their Social Security payments taken away to repay student debt, especially given the rising costs of healthcare and living expenses. The Education Department has indicated that the pause in collections may allow borrowers to rehabilitate their loans.
Notably, around 9.6 million student loan borrowers are aged 50 and older, collectively holding nearly $457 billion in outstanding loans, highlighting the potential impact of this legislation on a vulnerable demographic