A growing number of older Americans carry student loan debt into retirement. The government can withhold 15% of Social Security benefits to repay those loans.
This practice affects seniors who default on federal student loans. Their monthly benefit checks shrink, sometimes pushing them closer to poverty.
Lawmakers have introduced proposals to end the offset. One bill would stop garnishment of Social Security benefits for student loan debt.
Supporters argue the government should not take retirement income meant to keep seniors afloat. They say the offset punishes borrowers who already struggle financially.
Debt among older households is climbing. More retirees carry loans than in past decades, often from their own education or loans taken for children.
The offset applies only to federal student loans in default. Private lenders cannot garnish Social Security benefits.
Critics of the current policy say it traps seniors in a cycle of hardship. They call for alternative repayment options instead of benefit cuts.
The proposals face an uncertain path in Congress. No vote has been scheduled, leaving the offset in place for now.
