If you receive social security, additional security income (SSI) or both, and you have unpaid student loan debts that you have not paid, your check in June – and potentially future checks – may be less.
In May, the US Department of Education announced that it would begin “involuntary efforts to gather” for approximately 5.3 million people who were overdue on their federal student loans. Previously, the government launched a pause at the beginning of the Covid-19 pandemic in 2020, but this ended, as well as some of the opportunities to repay former President Biden and initiatives for forgiveness for a loan.
Notifications sent by the Education Division have called on the borrowers by default to contact their default grant group to make a monthly payment, to enroll in a plan for payment of income, or to register for a loan rehabilitation. In order to cover the debt due, those who have not made one of them will see their salaries garnished and the tax refunds confiscate.
And their benefits to social security are decreasing. Of the 5.3 million borrowers, approximately 425,000 are 62 years old or more, according to the Consumer Bureau.
Here’s what you can do.
Social Security benefits have a special garnish protection, with restrictions on how much they can be garnished from the Ministry of Finance Compensation Program.
Money cannot be taken for medical debts, bankruptcy or civil cases. But this can be garnished with various restrictions to pay the child’s maintenance, maintenance or restitution and debts due to the federal government, as student loans.
Most that can be taken for federal debts, such as student loans. is 15%, which is not insignificant for people living with fixed income. Currently, $ 750 a month social security income is protected from garnishing, which can place the recipients below the poverty line.
So far, you had to get a notice from the education department if you are in default, and the US Secretary of Education Linda McMahon has called on all colleges and universities who receive federal funding assistance to contact all former students by June 30 to remind them of their obligation to pay off every federal student.
In order to be default, you will need to have 270 days (approximately nine months) non -payment for most federal student loan staff. Check the terms of your specific student loans. After 360 days, the loans are transferred to the Defaults to the Ministry of Education.
You can also log in to a site Studentaid.gov to see if your loans are by default
Check Studentaid.gov to see your status who is your employee and the conditions of your loan.
If you have received a notice from the Ministry of Education, read it carefully to see what your options are. Generally speaking, you can:
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Apply for repayment plans based on income that can reduce your monthly payments to make them more affordable
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Rehabilitate unfulfilled loans by making nine out of 10 consecutive, on time, full, voluntary, reasonable and affordable payments
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Consolidate your loans as part of a loan rehabilitation agreement
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Continue to leave the government to garnish your income, which may affect Uyour credit rating
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Pay the debt entirely
The education department notes that, depending on the borrower’s income, payments under a loan rehabilitation agreement can reach $ 5 a month.
The education department said it would offer support to support borrowers in choosing the best repayment plan, including a new loan simulator, AI assistant called Aidan, and extended call times.
The improved income -oriented repayment process will simplify the time in which it will take the borrowers to enroll, according to the education department, and to eliminate the need for borrowers to recite their income each year.
Keep in mind that the Trump administration employees in the education department are almost halved, so it may be more difficult to reach someone there for help. You may need to make repeated calls to go.
Social Security in Florida: How dependent is Florida on social security? Doctrine is ranked, how many people do
The additional security income is the payment of compensation for those with limited income or resources aged 65 or more years that are blind or have qualified disability. Children with qualified disability can also receive SSI, according to the SSA website.
Adults who earn more than $ 2,019 from work a month are usually not eligible for SSI.
As of April 2025, 543 098 Floridians received SSI payments according to Social Security Administration. Of these, 241 868 are 65 years of age or older, and 382 925 were damaged or disabled.
Florida had more than 5 million people who claimed social security benefits since December 2023, according to AARP. This included over 3.9 million pensioners, over 478,000 disabled workers, more than 401,000 spouses or surviving and nearly 240,000 children.
Almost one of five pensioners in Florida, family members, veterans and others receive social security benefits, according to AARP.
This article originally appeared in Naples Daily News: Default Student Loans may mean a smaller social security check
