Millions Could Be Shielded From Social Security Seizures Under New Bill
Summary
A new bill proposed by Senator Bernie Sanders aims to stop the government from taking Social Security payments to repay defaulted federal student loans. The bill would protect millions of older Americans and people with disabilities from losing part of their benefits due to student loan debt.Key Facts
- The bill is called the Stop Social Security Garnishment Act of 2026.
- It is cosponsored by Senators Elizabeth Warren and Ed Markey.
- The bill would change federal law to prevent Social Security payments from being used to collect defaulted student loans.
- About 9.5 million people in the U.S. are in default on their federal student loans.
- Older Americans owe nearly $457 billion in student loans, with many defaulted borrowers receiving Social Security benefits.
- Current rules allow up to 15% of certain Social Security benefits to be withheld for debt collection, but only $750 per month is fully protected.
- The number of Social Security beneficiaries losing money to student loan collections rose from about 6,200 in 2001 to over 190,000 in 2019.
- Many borrowers rely heavily on Social Security income and face financial hardship when benefits are garnished.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
