Millions Could Be Shielded From Social Security Seizures Under New Bill
"No senior should have their Social Security payments taken away," Vermont Independent Senator Bernie Sanders said.
A proposed bill by Senator Bernie Sanders would shield millions of Americans with student debt from having their Social Security benefits seized to collect defaulted federal student loans. The Stop Social Security Garnishment Act of 2026, co-sponsored by Democratic Senators Elizabeth Warren and Ed Markey, would amend federal higher education law to prevent the government from offsetting Social Security payments if a borrower defaults on a federal student loan.
Sanders emphasized that no senior in the richest country should have their Social Security payments taken away to pay back student debt. The legislation aims to protect older Americans and individuals receiving Social Security Disability Insurance. As of March 2026, 9.5 million borrowers, more than one in five federal student loan borrowers, were in default, with $233.3 billion of the country's $1.7 trillion in federally backed student loan debt in default.
Older Americans, especially those aged 50 and older, owe nearly $457 billion in student loans. If the bill becomes law, the protection for Social Security payments would be permanent.
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