"And while the average retirement benefit today is only $2,071, it's somehow just enough income for some seniors to live on. But it's not a given that every Social Security recipient will get their monthly check in full. Working while collecting Social Security, for example, could result in withheld benefits for exceeding the program's earnings test thresholds. The earnings test applies to Social Security recipients who have not yet reached their full retirement age."
"Social Security is facing a major funding shortfall, so the Trump administration has been fairly aggressive in trying to preserve the program's financial resources. Now, seniors risk having a portion of their benefits garnished due to factors that include: Overpayments Back taxes Overdue child and spousal support Generally speaking, defaulting on federal student loans is another reason why a given Social Security check may be garnished."
"But last year, the Trump administration threw seniors in that boat a bit of a bone. In mid-2025, the Department of Education announced that it would pause Social Security garnishments on delinquent student loans temporarily. However, the DOE made it clear that this was merely a pause, and not a new policy. As such, it's not unreasonable to assume that at some point soon, Social Security benefits will be subject to garnishment for unpaid federal student loans."
Millions of older Americans rely on monthly Social Security payments, with an average retirement benefit of $2,071. Benefits can be withheld for earning above the program's thresholds before full retirement age. Benefits may also be garnished for overpayments, back taxes, and overdue child or spousal support. Defaulted federal student loans are another grounds for garnishment. In mid-2025, the Department of Education temporarily paused Social Security garnishments for delinquent federal student loans, but the pause was described as temporary rather than permanent. Federal borrowers often have more protections, and hardship exemptions may be available.
Read at 24/7 Wall St.
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