💨 Abstract

On June 3, 2025, the Education Department announced that Social Security benefits of borrowers who defaulted on federal student loans would no longer be garnished. This decision was made at the end of the lockdowns, with an estimated 452,000 people aged 62 and older in default, according to a January report by the Consumer Financial Protection Bureau. The department has ceased collecting any Social Security benefits and will not resume any future offsets.

Courtesy: WTOP Staff