US Sen. Bernie Sanders on Monday introduced legislation that would prohibit the federal government from garnishing Social Security payments from older Americans and people with disabilities who default on their student loans, a move that comes amid a debt crisis made worse by education cuts in President Donald Trump’s so-called One Big Beautiful Bill Act.
The Stop Social Security Garnishment Act, co-sponsored by Sens. Elizabeth Warren (D-Mass.) and Ed Markey (D-Mass.), would bar the Treasury Department from seizing Social Security payments, including Social Security Disability Insurance, to collect on defaulted federal student debt.
“As a result of Trump’s disastrous cuts to education, an increasing number of seniors are in danger of having their Social Security checks garnished to pay back student loans they took out decades ago. That is beyond unacceptable,” Sanders (I-Vt.) said in a statement.
“In the richest country in the history of the world, no senior should have their Social Security payments taken away from them to pay back student debt," the senator added. "This is especially true when seniors throughout the country already cannot afford the skyrocketing price of healthcare, prescription drugs, groceries, and housing. Congress must pass this legislation.”
Sanders’ bill comes as more than 9 million Americans are in default on their federal student loans, according to the latest Department of Education data. Republicans’ One Big Beautiful Bill, which was signed into law by Trump last year, contains the biggest cuts to education in US history while making federal student loans less forgiving for borrowers, in part by attacking repayment protections that could help avert defaults.
Student loan delinquency reached 10.6% in the second quarter of 2026, up from 10.3% in the first quarter, according to the Federal Reserve Bank of New York. Meanwhile, the Trump administration is moving millions of borrowers off the Biden-era SAVE repayment plan, raising concerns among borrowers that higher monthly payments could push more people into delinquency and default.
Under current law, borrowers can generally enter default and be subjected to collection measures after missing payments for 270 days.
All told, student borrowers are collectively on the hook for nearly $2 trillion in loan debt, according to the Federal Reserve Bank of St. Louis. Over $233 billion of that amount is in default.
Sanders aims to “put an end to this absurdity and ensure no Social Security payments are taken away from older adults or individuals with disabilities due to student loan debt.”
The Stop Social Security Garnishment Act is endorsed by organizations including the American Federation of Teachers, Protect Borrowers, Student Debt Crisis Center, American Association of University Women, Debt Collective, Social Security Works, and the Alliance for Retired Americans.
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