Social Security Checks May Shrink in June as Student Loan Garnishments Resume

Some Social Security beneficiaries may receive smaller checks this month, as the federal government resumes garnishing benefits from those in default on their student loans.

The U.S. Department of Education, under the Trump administration, announced on April 21 the reinstatement of collection efforts on the nation’s $1.6 trillion federal student loan portfolio. The move ends a pause that began nearly five years ago under pandemic-era policies.

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As a result, garnishments on Social Security payments may begin in June for those who have defaulted. According to the Consumer Financial Protection Bureau, more than 450,000 federal student loan borrowers aged 62 and older are in default and likely receive Social Security benefits.

Affected individuals may see their benefit reduced by up to 15%, although they must retain at least $750 per month, said higher education expert Mark Kantrowitz. The offset applies to all types of Social Security benefits, including retirement and disability, and is based on the gross benefit amount before deductions like Medicare premiums.

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Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York, said the garnishment could alarm recipients who rely heavily on Social Security. “The good news is there are multiple options for borrowers to stop those payment offsets,” she said.

Borrowers should have received a 30-day advance notice with instructions to contest the garnishment. They may also seek relief through options such as Total and Permanent Disability (TPD) discharge or enrolling in an income-driven repayment plan, which could reduce their monthly student loan payment to zero.

Payment dates for June benefits vary by recipient and may fall on June 3, 11, 18, or 25, according to the Social Security Administration.