Sen. Bernie Sanders [I-Vt.] plans to introduce legislation that would prohibit the federal government from withholding Social Security benefits from people who have defaulted on federal student loans.
The measure, the Stop Social Security Garnishment Act of 2026, would amend Part G of Title IV of the Higher Education Act of 1965 by adding a new Section 493E. The operative text states that payments due to an individual under the Social Security Act shall not be subject to offset in the event of a default on a loan made, insured, or guaranteed under Title IV.
Sen. Sanders, ranking member of the Senate Health, Education, Labor and Pensions Committee, plans to introduce the bill when the Senate returns from recess next month. Sen. Elizabeth Warren [D-Mass.] and Sen. Ed Markey [D-Mass.] are cosponsors.
Sanders’ office said more than 9 million Americans are in default on student loans and that roughly 1 in 4 borrowers are at risk of having wages or benefits seized. The Federal Reserve Bank of New York reported that 7.8% of student loan borrowers were delinquent in the second quarter. Counts of older borrowers varied by source: Sanders cited more than 3 million borrowers over age 62; the Education Department’s Federal Student Aid office reported 3.2 million borrowers 62 or older holding nearly $144 billion.
The Education Department said in January it would delay involuntary collections while it implemented repayment changes under the One Big Beautiful Bill Act, which President Trump signed in July 2025 and which cut the number of repayment plans and added two new options on July 1. In June 2025, the department said it would not cut Social Security benefits for affected borrowers.
“In the richest country in the history of the world, no senior should have their Social Security payments taken away from them to pay back student debt,” Sanders said.
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