Sanders proposed banning the deduction of student loan payments from Social Security benefits
U.S. Senator Bernie Sanders of Vermont plans to introduce a bill in the Senate that would prohibit the garnishment of Social Security benefits to repay federal student loan debt. The initiative is called the Stop Social Security Garnishment Act, according to CNBC.
According to a spokesperson for the senator, Sanders will officially introduce the bill once the Senate resumes session next month. The initiative has also been endorsed by Democratic Senators Elizabeth Warren and Ed Markey, who represent Massachusetts.
The bill stipulates that Social Security retirement and disability benefits will not be reduced to pay off outstanding student loan debt. Older borrowers who are in default must be protected from forced garnishment of such benefits.
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According to an Associated Press analysis of federal data as of March, approximately 9.5 million borrowers are in default on their student loans. Sanders’ announcement notes that nearly one in four borrowers is unable to repay their loan and risks having funds garnished from their paychecks or Social Security benefits.
The Trump administration suspended debt collection from borrowers in default on federal student loans. In June 2025, it announced that it would not reduce Social Security payments to such borrowers. In January, the U.S. Department of Education also announced a postponement of wage garnishments and other enforcement actions while new loan repayment options are being implemented.
According to U.S. Department of Education data for the second quarter, approximately 9.6 million borrowers aged 50 and older have a total of nearly $457 billion in outstanding student loans.
