Trump administration pauses garnishment of Social Security checks for defaulted student loans
CBSN
The Trump administration says it's pausing the garnishment of Social Security benefits for student loan borrowers who have defaulted.
That means a temporary pause on a decision announced in April to restart collections on student loans in default. On May 5, the restart policy was put into action when the Education Department began involuntary collections through the Treasury Department's offset program, which claws back overdue debts by garnishing federal payments such as tax refunds and Social Security checks.
The halt comes after the Trump administration last month retreated from another type of Social Security benefit clawback, when it announced it would only take 50% of a person's monthly check to recover overpayments, down from a previously announced 100%. In that case, advocates for senior citizens had expressed concern that the policy would lead to hardship, given that one-third of Social Security recipients rely on their monthly benefit check for at least 75% of their income.
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