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452,000 Seniors Face Student Loan Garnishment Uncertainty

12/7/2025

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Summary

Story summary

About 452,000 Social Security beneficiaries face uncertainty over the federal student loan pause.
President Donald Trump has increased garnishment rates, with a 15% garnishment in 2026.
Beneficiaries can avoid garnishment through Total and Permanent Disability discharge or financial hardship exemptions.
The Social Security Administration has reinstated a 50% overpayment recovery rate, reducing payouts.
Borrowers aged 62 and above have risen by 59% since 2017, highlighting retirees' financial strain.

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Story summary

About 452,000 Social Security beneficiaries face uncertainty over the federal student loan pause.
President Donald Trump has increased garnishment rates, with a 15% garnishment in 2026.
Beneficiaries can avoid garnishment through Total and Permanent Disability discharge or financial hardship exemptions.
The Social Security Administration has reinstated a 50% overpayment recovery rate, reducing payouts.
Borrowers aged 62 and above have risen by 59% since 2017, highlighting retirees' financial strain.