Sen. Bernie Sanders (I-Vt.) says he plans to introduce a new bill to eliminate Social Security garnishments for seniors with student loan debt.
The proposal, called the Stop Social Security Garnishment Act of 2026, is backed by Elizabeth Warren (D-Mass.) and Ed Markey (D-Mass.).
“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,” Sanders said in a statement announcing the proposed bill.
The Department of Education’s Federal Student Aid office reports that 3.2 million student loan borrowers are 62 or older and hold nearly $144 billion in outstanding student loan debt.
In the second quarter of 2026, roughly 7.8% of student loan borrowers were delinquent, according to data from the Federal Reserve Bank of New York. According to Sanders’ announcement, over 9 million Americans are now in default on their student loans, with nearly 1 in 4 potentially at risk of having their wages seized by the government.
Half of Social Security recipients who had a Social Security check garnished because of a defaulted student loan reported skipping a doctor’s visit or reported being unable to obtain a prescription they needed, due to cost, according to the Consumer Financial Protection Bureau.
“More than 1 in 3 Social Security recipients with student loans are reliant on their Social Security payments to make ends meet,” according to Sanders’ office.
Read on to learn what the bill aims to do and what it might mean for seniors with student loan debt.
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Financial pressure gains as student loan collections restart
In June 2025, the Department of Education said it would pause Social Security collections and tax refund offsets for this year, a policy change by the administration.
“However, all indications point to collections restarting, and we’ve heard that they may have already restarted on other types of student loans like old HEAL loans and old FFEL loans,” Robert Farrington, founder of The College Investor, told Yahoo Finance.
He added that many people wonder how borrowers receiving Social Security could still have student loans.
“The most common things we have seen are graduate student loans taken later in life, as well as Parent Plus loans borrowed for their children later in life,” Farrington said.
Jack Wang, college financial aid advisor and host of the Smart College Buyer podcast, agreed, saying the student loan debt issues are mounting.
“I’m increasingly seeing parents with major six-figure debt from Parent PLUS loans, and many of these parents are hoping to retire soon,” Wang told Yahoo Finance. “These families are looking at monthly loan payments of several thousand dollars, which will make it hard for them to live today and save for retirement.”
What the Stop Social Security Garnishment Act would do
The Stop Social Security Garnishment Act would permanently prohibit the seizure of Social Security benefits to collect student loans. It would also protect other retirement benefits, including Social Security disability insurance.
“The Department of Education can currently garnish up to 15% of Social Security and disability payments as long as the individual is left with at least $750,” Farrington told Yahoo Finance. “That $750 limit has not been changed since the ’90s, and it’s a pretty low amount.”
The bill would also aim to ensure that seniors have “access to their Social Security payments to access vital healthcare, medicine, and groceries without fear of having access to those basic needs disrupted due to a student loan in default,” according to a summary of the proposal from Sanders’ office.
‘Long odds’ to pass
The bill is expected to be formally introduced to the Senate when the August recess ends on Sept. 14, 2026. It would need support from Senate Republicans, who hold the majority, to advance.
“I think the bill faces long odds to pass despite the fact that there does seem to be some support on both sides of the aisle. A Democratic-led bill passing in this current environment seems rare,” Farrington said.
