Sen. Bernie Sanders (I-Vt.) announced Monday that he will introduce legislation to prevent the federal government from garnishing Social Security benefits to recover unpaid student loan debt. The proposed bill, titled the Stop Social Security Garnishment Act of 2026, seeks to prohibit the Education Department from reducing an individual’s retirement or disability payments to offset outstanding student loans.
The announcement comes following changes to federal student loan programs enacted under the One Big Beautiful Bill Act, which President Trump signed into law in July 2025. In January 2026, the Education Department delayed involuntary collections on federal student loans to allow for the implementation of new repayment plans, including a tiered standard plan and an income-driven plan that launched last month.
According to data from the Education Data Initiative, approximately 20% of student loan borrowers are aged 50 or older, with those between 50 and 61 carrying the highest average balance of $48,875. Sanders’s office stated that 9 million Americans are currently in default on their loans, and one in four borrowers faces the risk of wage garnishment. Data from the Federal Reserve Bank of New York indicated that 7.8% of borrowers were delinquent as of the second quarter of this year.
For these individuals, the bill would mean they would retain the full amount of their monthly Social Security checks, which the bill's summary states are often used for essential costs such as healthcare, medicine, groceries, and housing. Under current rules, the government can garnish these benefits to pay off federal debt, a practice the Education Department had paused in January to transition to new repayment plans. If the pause expires without new legislative protections, eligible borrowers would see a reduction in their monthly benefits starting on a date not yet specified by the department.
A shift in policy would also impact the Education Department’s ability to recover federal funds through the Treasury Offset Program, which manages the garnishment process. The bill is co-sponsored by Democratic Senators Ed Markey and Elizabeth Warren of Massachusetts. Sen. Sanders plans to formally introduce the measure on September 14, 2026, when the Senate returns from its current recess. The Education Department has not yet provided an updated statement regarding its future collections policy.