Sanders Bill Would Ban Social Security Garnishment For Defaulted Student Loans

Sen. Bernie Sanders (I-VT) announced on August 17 that he will introduce the Stop Social Security Garnishment Act of 2026, a bill that would permanently bar the federal government from seizing Social Security payments to collect defaulted federal student loans. Senators Elizabeth Warren (D-MA) and Ed Markey (D-MA) are cosponsoring the bill, which comes as more than 9 million borrowers are in default (nearly 1 in 4 Americans with federal student loans).

The bill itself (PDF File) amends Title IV of the Higher Education Act to add a new Section 493E, which states that no payments due under the Social Security Act can be offset under the federal debt collection statute when a borrower defaults on a federal student loan. The protection would cover retirement benefits and Social Security Disability Insurance, and would take effect immediately if the bill passes.