The U.S. Department of Education is halting its plan to resume garnishing Social Security benefits from retirees who have defaulted on student loans, according to CNBC. An Education Department spokesperson said the Trump administration aims to protect Social Security recipients who depend on fixed incomes. The move marks a sharp reversal from the Trump administration’s April 21 announcement that it would restart collection efforts on the $1.6 trillion student loan portfolio. More than 450,000 borrowers aged 62 and older are currently in default and likely rely on Social Security income. The federal government can collect on defaulted student loans by seizing tax refunds, wages, and Social Security benefits. Social Security checks may be reduced by up to 15% for repayment. The pause offers older borrowers more time to resolve their debt and avoid financial hardship, particularly as advocates warn that benefit reductions could jeopardize access to food and medical care.
