The U.S. Department of Education has announced a temporary suspension of garnishment of Social Security benefits for individuals with defaulted federal student loans. The move is part of the government’s ongoing efforts to provide financial relief to borrowers as part of broader student loan reform measures.
Garnishment of Social Security benefits, a process in which the federal government withholds a portion of benefits to repay defaulted loans, has been criticized for impacting older Americans and disabled individuals who rely on the payments as a primary income source. The department confirmed that the pause is temporary and that collections are expected to resume in the summer of 2025.
While officials did not provide an exact date for when the garnishments will restart, the Department of Education emphasized that the pause is designed to give affected borrowers more time and opportunity to explore available relief options, including loan consolidation, income-driven repayment plans, and the Fresh Start initiative, which allows defaulted borrowers to return their loans to good standing.
This temporary suspension is part of a set of changes the Biden administration has proposed to address longstanding issues within the federal student loan system. The administration has also introduced targeted debt cancellation measures and streamlined processes to ease repayment burdens for struggling borrowers.
Borrowers impacted by garnishment are encouraged to contact their loan servicers or visit the Department of Education’s official website to explore options for avoiding default and protecting their Social Security benefits in the long term.
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