Social Security Checks Shrink In June As Student Loan Garnishments Resume
Starting June 2025, some Social Security recipients will see smaller checks as the federal government resumes student loan garnishments.
This marks the end of a nearly five-year pause that had shielded beneficiaries from collections due to pandemic-era relief measures.
The reinstated policy affects hundreds of thousands of seniors who are in default on federal student loans.
What’s Happening in June 2025?
The U.S. Department of Education has resumed collection efforts on defaulted student loans. As a result, Social Security benefits can now be garnished, meaning a portion of a beneficiary’s monthly check will be withheld to repay their outstanding debt.
Who Is Affected?
- Individuals aged 62 and above
- Those who have defaulted on federal student loans
- Retirees receiving Social Security benefits but not enrolled in income-based repayment or rehabilitation programs
An estimated 450,000+ older borrowers are at risk of garnishment. Most of these individuals live on fixed incomes and may already be struggling with high living costs.
Key Details of Social Security Garnishments
| Category | Details |
|---|---|
| Effective Month | June 2025 |
| Monthly Garnishment Limit | Up to 15% of monthly Social Security income |
| Protected Amount | Minimum $750 must remain after deduction |
| Loan Type | Defaulted federal student loans only |
| Number of Affected Seniors | Over 450,000 recipients |
Why Social Security Payments Are Being Garnished
The government has long had the authority to collect student loan debt from Social Security checks through garnishment. This resumed process allows for deductions if a borrower is in default, which is defined as being 270 days past due on payments.
This step was paused during the pandemic but is now fully reinstated.
How Much Could Be Deducted?
- Maximum deduction is 15% of your benefit.
- However, your post-garnishment payment must be at least $750.
- For example:
- If you receive $1,300/month in Social Security, up to $195 may be garnished.
- You’ll still receive at least $750 monthly, even if your original benefit is lower.
This amount can significantly reduce available income for seniors who are already balancing food, medicine, and rent costs.
What You Can Do If You’re at Risk
If you’re facing a potential garnishment, consider taking one of the following steps:
1. Loan Rehabilitation
Make nine consecutive monthly payments to exit default. This restores eligibility for protections and income-based repayment plans.
2. Loan Consolidation
Merge existing federal loans into a new consolidated loan to reset your payment status and stop collections.
3. Hardship Appeal
If garnishment will cause undue financial hardship, you may request a review or hearing. In some cases, this can lead to temporary or permanent relief.
4. Income-Driven Repayment Plans
If you’re still working or receiving income, enrolling in one of these plans can lower your monthly payment based on what you can afford.
Taking action quickly is key to stopping garnishments or reversing them before they affect your June check.
Payment Dates and What to Expect
The first Social Security check reflecting the resumed garnishments is scheduled for June 3, 2025. Anyone impacted will see the reduced amount directly in their account or on their mailed statement.
Important Considerations
- Supplemental Security Income (SSI) is not subject to garnishment.
- Garnishments only apply to defaulted loans – if you are in good standing, you will not be affected.
- If your loans are in collections and you haven’t received a notice, you may still be subject to garnishment soon.
As of June 2025, Social Security checks may be reduced for beneficiaries with defaulted student loans. While this move revives pre-pandemic collection practices, it poses serious concerns for seniors on fixed incomes.
If you’re impacted, know that relief options exist, but you must act quickly. Understanding your rights and responding to notices can help protect your income and secure long-term stability.
FAQs
How do I know if my Social Security check will be garnished?
If you’re in default on a federal student loan, you will receive a formal notice. You can also contact your loan servicer or check your account online to confirm.
Can the entire Social Security check be taken?
No. Only up to 15% of your monthly check can be garnished, and you’re guaranteed at least $750 in remaining monthly income.
What happens if I enter into a repayment plan now?
Enrolling in rehabilitation or income-driven repayment may stop garnishments, but you need to act before the garnishment takes effect. The sooner you reach out, the better your chances.
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