A growing number of older Americans carrying student loan debt could face a new financial challenge as federal collection efforts resume, but a proposed bill from Sen. Bernie Sanders could prevent Social Security benefits from being used to recover unpaid loans.
The Vermont senator is introducing the Stop Social Security Garnishment Act of 2026, legislation designed to block the Education Department from withholding Social Security retirement or disability payments from borrowers who have fallen behind on federal student loans.
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The proposal would specifically prevent the government from reducing Social Security and Supplemental Security Income (SSI) benefits to collect outstanding student debt, while allowing older Americans to keep access to money needed for everyday expenses.
Sanders said seniors should not have their benefits reduced because of student loans, particularly as many already face rising costs for healthcare, medication, food and housing.
“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.
“This is especially true when seniors throughout the country already cannot afford the skyrocketing price of healthcare, prescription drugs, groceries and housing. Congress must pass this legislation.”
The bill is expected to be introduced in the Senate when lawmakers return from recess on September 14. Sens. Elizabeth Warren and Ed Markey of Massachusetts are supporting the legislation as co-sponsors.
Why older borrowers are at center of debate
Student loan debt is no longer only an issue affecting younger Americans. A significant portion of borrowers are now approaching retirement age or already receiving Social Security benefits.
Around one in five student loan borrowers are at least 50 years old, according to data cited by Sanders’ office and the Education Data Initiative. Borrowers between ages 50 and 61 have the highest average balance, with outstanding debt averaging approximately $48,875.
The senator’s office also noted that more than one-third of Social Security recipients with student loans rely on their monthly benefits to cover essential expenses.
Meanwhile, millions of Americans remain behind on federal student loan payments. Sanders’ office estimates that more than nine million borrowers are currently in default, leaving many vulnerable to federal collection actions.
The proposed legislation would not cancel student loan debt or eliminate repayment obligations. Instead, it would remove Social Security garnishment as a collection method for borrowers who depend on those payments.
What happens if Stop Social Security Garnishment Act isn’t passed?
The Education Department previously delayed involuntary collections on federal student loans while new repayment options were being implemented.
The changes followed the One Big Beautiful Bill Act, signed into law in July 2025, which reduced the number of repayment plans available to borrowers and introduced new repayment structures.
The department said the pause would give borrowers time to review their options and begin the rehabilitation process if they were in default. However, Sanders warned that restarting collections could put additional pressure on seniors already dealing with higher living costs.
The Stop Social Security Garnishment Act now faces the challenge of moving through Congress before any protections become law. Until then, older borrowers with student debt remain closely watching how lawmakers address the issue.
