Here’s Why Some Social Security Recipients Are Seeing Their Benefits Checks Cut

In June, the Social Security Administration started reducing the monthly benefits by 15 percent for recipients who are in default on federal student loans. According to an article by FingerLakes1.com, this is a resumption of a longstanding policy that was paused during the pandemic.

According to the article, “over 100,000 Americans age 62 or older are currently in default on federal student loans. Under current law, the government can garnish up to 15 percent of Social Security benefits—but not below a protected threshold of $750 per month.”

If you are in this situation, you can contact the Department of Education to look into ways to avoid garnishment, such as rehabilitation agreements, income-driven repayment plans, and the Fresh Start Initiative.

The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.