Borrowers who defaulted on their federal student loans will no longer be at risk of having their Social Security benefits garnished, an Education Department spokesperson said this week.
The government last month restarted collections for the millions of people in default on their loans. An estimated 452,000 people aged 62 and older had student loans in default, according to a January report from the Consumer Financial Protection Bureau.
The department has not garnished any Social Security benefits since聽collections resumed after the COVID-19-pandemic, and paused "any future Social Security offsets," department spokesperson Ellen Keast said Tuesday.
"The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income," Keast said.
Advocates encouraged the Trump administration to go further to provide relief for the approximately 5.3 million borrowers in default.
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"Simply pausing this collection tactic is woefully insufficient," said Persis Yu, executive director of the Student Borrower Protection Center. "Any continued effort to restart the government's debt collection machine is cruel, unnecessary and will further fan the flames of economic chaos for working families across this country."
Student loan debt among older people grew at a staggering rate, in part due to rising tuition that forced more people to borrow heavily. People 60 and older hold an estimated $125 billion in student loans, according to the National Consumer Law Center, a sixfold increase from 20 years ago.
That led Social Security beneficiaries who had their payments garnished to balloon from approximately 6,200 beneficiaries to 192,300 between 2001 and 2019, according to the CFPB.
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Associated Press writer Collin Binkley contributed to this report.
