Sen. Bernie Sanders (I-Vt.) is set to introduce legislation that would prohibit the federal government from garnishing Social Security benefits to collect on unpaid student loans, a move aimed at shielding older Americans from financial hardship.
The Stop Social Security Garnishment Act of 2026, which Sanders announced Monday, would bar the Education Department from reducing an individual's Social Security retirement or disability payments to offset outstanding student debt. The bill also seeks to protect older adults from what the senator's office described as “unnecessary forced collections,” ensuring they can use their benefits for essentials like healthcare, medicine, and groceries.
Sanders will formally introduce the measure when the Senate returns from recess on September 14, according to a spokesperson. The legislation comes as data shows that roughly one in five student loan borrowers is at least 50 years old, with those aged 50 to 61 carrying the highest average balance at $48,875, per the Education Data Initiative. Federal Reserve Bank of New York figures indicate that about 7.8 percent of borrowers were delinquent in the second quarter of this year, meaning they had missed at least three monthly payments.
Sanders's office highlighted that nine million Americans are currently in default on their loans, and one in four borrowers faces the risk of wage seizure to satisfy the debt. The senator's push follows the Education Department's January decision to delay involuntary collections on federal student loans, a pause intended to allow for the rollout of new repayment options under the One Big Beautiful Bill Act, signed into law by President Trump in July 2025. That legislation reduced the number of repayment plans and introduced two new ones: a tiered standard plan and an income-driven plan.
The department said the delay would give defaulted borrowers time to “evaluate” the new options and begin the “rehabilitation process.” But Sanders argued that the pause is insufficient, warning that “an increasing number of seniors are in danger of having their Social Security checks garnished to pay back student loans they took out decades ago.” He called the situation “beyond acceptable.”
“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 in a statement. “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 Hill has reached out to the Education Department for an update on its collections policy. The bill has drawn support from Democratic Sens. Ed Markey and Elizabeth Warren of Massachusetts, who are joining as co-sponsors. Markey is currently facing a primary challenge from Rep. Seth Moulton (D-Mass.), with the election just two weeks away.
This effort aligns with broader progressive concerns about the financial pressures on older Americans and the political push for debt relief. Sanders's proposal is likely to reignite debate over federal student loan policy and the treatment of vulnerable borrowers.
