Lawmakers: Nix Social Security Offsets For Seniors In Student Loan Default
Offsetting Social Security benefits to pay for defaulted student loans can be devastating for some beneficiaries, lawmakers say.


A group of more than 30 U.S. lawmakers are calling for the Biden administration to end the practice of offsetting Social Security benefits to pay off the student loan defaults of seniors and people with disabilities.
The group — led by U.S. Senators Elizabeth Warren (D-MA) and Ron Wyden (D-Ore.) and U.S. Representatives Ayanna Pressley (D-MA), Pramila Jayapal (D-WA), Raúl Grijalva (D-AZ) and John Larson (D-CT) — said that social security beneficiaries can be pushed closer to, or even into, poverty by the practice, which undermines the mission of the Social Security Act.
In a March 19 letter to the Social Security Administration (SSA), the Department of Treasury (Treasury) and Department of Education, the lawmakers urged action on the Treasury Offset (TOP) program, which authorizes the collection of defaulted student loans and other debts using Social Security benefits. They are asking that Social Security retirement, survivor and disability benefits be exempted from the offsets due to student loan debt.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The lawmakers, who asked for a response to their letter by April 4, said that more than 3.5 million seniors had student loan debt totaling over $125 billion in 2023. Social Security benefits are reduced by about $2,500 annually for borrowers in default, they said in the letter.
The situation "can be a devastating blow to those who rely on Social Security as their primary source of income," the lawmakers said.
“Unfortunately, older borrowers often face the greatest repayment struggles, with nearly 40 percent of federal borrowers over the age of 65 in default on their student loans,” the lawmakers said. “These borrowers who have struggled with their student loan repayment progress could see their wages, tax refunds and Social Security checks garnished or offset.”
Debt relief bill introduced
The move follows the reintroduction last year of the Student Loan Relief for Medicare and Social Security Recipients Act, which would forgive student loan debt dating back more than 20 years for current and future Medicare and Social Security Disability Insurance enrollees.
The bill is "an important first step in our work to ensure that seniors and those with disabilities can focus on their health, well-being, and living a life of dignity, according to Rep. Adam Schiff (D-CA) who sponsored the legislation with Rep. Raúl Grijalva (D-AZ).
The Biden administration has canceled almost $138 billion for nearly 3.9 million borrowers to-date, including $1.2 billion in loan forgiveness for about 153,000 Americans last month and $4.8 billion in loan forgiveness for roughly 80,000 Americans in December 2023.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Y Rule of Retirement: Why Men Need to Plan Differently
If you have a Y chromosome (because you're a guy), following the 'Y rule of retirement' can help you transition to this new life stage with grace.
-
Retire on This Island for Mediterranean Living on the Cheap
This independent nation has a lower cost of living and more visa options than many of its Mediterranean cousins.
-
The Y Rule of Retirement: Why Men Need to Plan Differently
If you have a Y chromosome (because you're a guy), following the 'Y rule of retirement' can help you transition to this new life stage with grace.
-
Retire on This Island for Mediterranean Living on the Cheap
This independent nation has a lower cost of living and more visa options than many of its Mediterranean cousins.
-
Do Baby Boomers Spend More on Travel? What You Can Learn from Each Generation
Baby Boomers lead in travel spending, but younger travelers may be getting better value. See how older travelers compare with younger ones — and what each generation can learn about smarter travel.
-
My First $1 Million: General Manager in Construction/Home Services, 46, Indiana
Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995
Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
-
An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work
When did you last review your will? Before kids? Before a big move? An update is essential, but regular reviews are even better. Here's why.
-
Google's AI Overview Is Wrong About Life Insurance 57% of the Time, Says Study
You need more than a grain of salt when getting life insurance tips from Google's AI overview.
-
How Apple’s Tariff Strategy Could Affect Your Next iPhone Upgrade
Apple’s $100 billion US expansion could shift iPhone assembly stateside — impacting pricing, availability and your next upgrade decision.