Pew Commends Halt to Social Security Garnishments for Defaulted Student Loans

On June 27, 2025, The Pew Charitable Trusts wrote to Department of Education Secretary Linda McMahon expressing appreciation for the suspension of collections of Social Security benefits from Americans age 62 and older who have defaulted on federal student loans. Pew supports the department’s assertion that targeted outreach to these borrowers outlining affordable loan repayment options, combined with direct assistance to help those on fixed incomes return to good standing on their loans, is preferable to involuntary collections.

As the department resumes student loan collections, Pew urges federal officials to pursue effective and responsible methods, particularly for low-income borrowers who are disproportionately affected by default. To that end, recommendations in the letter include:

• Preventing seizure of the Earned Income Tax Credit and Child Tax Credit benefits, which are vital for low-income families.
• Expanding access to income-based repayment for defaulted borrowers to ensure that payments are affordable and consistent with their income.
• Limiting collections fees and making them transparent for borrowers.