US EditionOlder people in crosshairs as government restarts Social Security garnishment on student loans
- In May 2025, the Department of Education restarted efforts to recover funds from a vast number of student loans that had been in default, ending a five-year suspension.
- The resumption follows the halt of debt collections due to prior policy decisions, reflecting renewed government enforcement on defaulted loans.
- Debt collectors must provide borrowers with written validation notices detailing the amount owed, creditor, and borrower rights, while obeying strict contact restrictions.
- Collectors cannot call before 8 a.m. Or after 9 p.m., call more than seven times per week, or contact borrowers at work or by electronic messages upon request, according to FTC guidance.
- Borrowers in default risk wage garnishment and tax refund seizures, and are urged to verify collector legitimacy and discuss repayment directly with loan servicers to avoid scams.
120 Articles
120 Articles
3 options for student-loan borrowers in default to protect their wages and Social Security
Student-loan borrowers in default could face wage and benefits garnishment. Shutterstock This summer, millions of student-loan borrowers could lose some of their wages and federal benefits if they don’t start making payments. They have options to avoid those consequences — but it won’t be easy. After President Donald Trump’s administration restarted collections on defaulted student loans on May 5, his Education Department said it sent notices to…
3 ways student-loan borrowers in default can avoid wage, Social Security garnishment: rehabilitation, consolidation, bankruptcy
Student-loan borrowers in default could face wage and benefits garnishment.ShutterstockThis summer, millions of defaulted student-loan borrowers could face wage and federal benefits garnishment.They have options to avoid those consequences, but some routes can take longer than others.Options include loan consolidation, loan rehabilitation, and bankruptcy.This summer, millions of student-loan borrowers could lose some of their wages and federal b…
Trump admin announces certain Social Security beneficiaries will face 15% cuts in June
Starting next month, Social Security beneficiaries who have fallen behind on their student loan payments face up to 15% garnishment of their payments.Earlier this month, the Trump administration announced student loan borrowers in default will be once again subject to the long-halted Treasury Offset Program (TOP).
Seniors struggle to repay longtime student loan debt
NEW YORK — Christine Farro has cut back on the presents she sends her grandchildren on their birthdays, and she’s put off taking two cats and a dog for their shots. All her clothes come from thrift stores and most…
What to know about the U.S. House GOP’s student loan overhaul • Daily Montanan
The U.S. Capitol pictured on March 25, 2025, in Washington, D.C. (Photo by Shauneen Miranda/States Newsroom) WASHINGTON — Students and families could see significant changes to how student loans are repaid as well as cuts to federal student aid as congressional Republicans look to slash billions of dollars in federal spending to offset the cost of President Donald Trump’s sweeping agenda. Republicans are using the complex reconciliation process …
For these folks with student loan debt, US may seize Social Security benefits
Christine Farro has cut back on the presents she sends her grandchildren on their birthdays, and she’s put off taking two cats and a dog for their shots. All her clothes come from thrift stores and most of her vegetables come from her garden. At 73, she has cut her costs as much as she can to live on a tight budget.
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