How much of your Social Security can be garnished for student loan debt?

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Millions of Americans with federal student loan debt are once again subject to involuntary collection efforts, and that includes the garnishment of Social Security benefits for those in default.

The Department of Education recently resumed these collection actions, raising serious concerns for older borrowers who rely heavily on monthly Social Security payments to cover essential living costs.

According to the Consumer Financial Protection Bureau, out of the 5.3 million borrowers facing potential garnishment, approximately 425,000 are 62 or older. That means hundreds of thousands of seniors could see their retirement income shrink significantly to repay old student loans.

When can Social Security benefits be garnished?

Social Security payments, including both retirement and disability benefits, generally enjoy legal protections from most types of debt. Financial advisor Krisstin Petersmarck explains, “You’re not going to have your Social Security benefit reduced if it’s credit card debt.” Medical bills, civil judgments, and even bankruptcy filings typically cannot touch these federal benefits.

But there are exceptions. According to Bryan Bibbo, a national Social Security advisor with JL Smith, “Social Security is protected from garnishment, but it’s not untouchable.” Certain debts – particularly those owed to the federal government – are subject to collection via garnishment.

Social Security benefits may be garnished in the following scenarios:

• Repayment of federal student loans
• Unpaid federal taxes
• Child support or alimony
• Restitution ordered by a court

Among these, child support orders are the most common source of garnishment, according to Rae Hartley Beck, a former Social Security claims specialist.

Garnishment limits and protections

The Treasury Offset Program, which handles these collections, applies strict limits to how much can be taken from your monthly benefit. For most federal debts – including student loans – the government can garnish up to 15% of your Social Security benefit.

However, if the debt is related to child support or alimony, the numbers are more aggressive:

• Up to 50% if you’re supporting another spouse or child, or 55% if you’re more than 12 weeks behind on payments
• Up to 60% if you’re not supporting another dependent, or 65% if significantly delinquent

Bibbo notes there is a safeguard for those facing garnishment for federal debts. “There is a rule that they must leave you with at least $750 to live on,” he says. But that safety net does not apply to garnishments for family support. “There’s no floor to the amount of money garnished (for those reasons),” he adds.

That means, for example, a retiree receiving $1,000 in monthly Social Security could lose up to $650 to a child support order – leaving just $350 to cover rent, food, and other necessities.

Bottom line for older borrowers

With the resumption of collection efforts, older Americans with defaulted student loan debt must brace for potential deductions from their benefits. While the law does provide some protections, garnishments can still deeply impact financial stability, especially for those with fixed incomes.

Borrowers facing these issues are encouraged to contact their loan servicer or a financial advisor to explore repayment options or rehabilitation programs that may prevent garnishment altogether.

This news was originally published on this post .

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