ATLANTA, GA — The Department of Education confirmed Tuesday it will not move forward with a previously-floated plan to garnish Social Security benefits for individuals who have defaulted on student loans.
Collections on federal student loans in default restarted in May after they were paused for five years due to the Coronavirus pandemic.
At the time, loans in collections may have resulted in Social Security garnishments for older borrowers. But the Education Department said Tuesday it would take steps to preserve Social Security benefits.
“The Department has not offset any social security benefits since restarting collections on May 5, and has put a pause on any future social security offsets," said Ellen Keast, a department spokeswoman. "The Trump Administration is committed to protecting social security recipients who oftentimes rely on a fixed income."
The department said it would reach out to affected borrowers to assist them with repayment options.
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There are more than 450,000 borrowers over the age of 62, according to a report by the Consumer Financial Protection Bureau. The National Consumer Law Center estimates borrowers 60 or older collectively owe more than $125 billion in student loans.
Borrowers between 35 and 49 years old have the highest student debt total, owing nearly $650 billion.
