Democratic senators on Monday introduced legislation to prohibit the federal government from garnishing Social Security benefits to collect unpaid student loan debt. The bill, titled the Stop Social Security Garnishment Act, would block the Treasury Department from seizing Social Security payments—including Social Security Disability Insurance—from borrowers in default.
Key developments in the proposal
The legislation is led by Sen. Bernie Sanders (I-VT), with co-sponsorship from Sen. Elizabeth Warren (D-MA) and Sen. Ed Markey (D-MA). Sanders’ office confirmed the bill will be formally introduced when the Senate reconvenes next month. The announcement follows a recent pause by the Trump administration on involuntary collections for defaulted federal student loans, including Social Security garnishment.
Scope of the issue
Nearly 1 in 4 student loan borrowers are at risk of default, according to Sanders’ office, with 9.5 million borrowers in default as of March data analyzed by the Associated Press. The New York Federal Reserve’s latest household debt report indicated a 10.6% student loan delinquency rate in the second quarter of 2026, up from 10.3% in the prior quarter. Researchers note that delinquency rates had stabilized but could rise again due to the elimination of the Biden-era SAVE repayment plan, which provided lower payments and faster debt relief timelines.
Policy context and recent changes
The Trump administration initially announced plans in June 2025 to resume collections on defaulted loans, including Social Security garnishment, before reversing course. In January 2026, the Education Department delayed wage garnishment and other involuntary collections while implementing new repayment options under the Trump administration’s “big beautiful bill.” These reforms reduced the number of repayment plans and introduced two new options starting July 1, 2026.
Supporting arguments for the bill
Sanders stated in a press release that “no senior should have their Social Security payments taken away to pay back student debt”, emphasizing the financial strain on seniors facing rising costs for healthcare, housing, and groceries. The bill’s fact sheet argues that forced collections are unnecessary and disproportionately harm vulnerable borrowers, including those with disabilities.
Next steps
The bill’s sponsors plan to introduce it formally when the Senate returns from recess. The legislation would take effect if passed, preventing future garnishment of Social Security benefits for student loan debt while borrowers work to rehabilitate their loans or enroll in new repayment plans.