Are you a retiree with unpaid student debts? Then, this will be of your interest. In recent years, the topic of Social Security in the United States has become very important for retirees who depend on that income to live during their retirement. However, student debt is causing concern because it could be the main cause for retirees losing part of their monthly money if they have student loans in the United States that were never paid back.
During the COVID-19 pandemic, the collection of these debts was paused, but now, the U.S. Department of Education warns that this pause might stop and start again with that collection. Experts like Mark Kantrowitz are warning retirees about the risks they could face if the government decides to resume deductions from Social Security payments. So, let’s see more in detail about this situation.
What’s happening with Social Security checks?
Lately, there is a very big concern for many retirees in the United States. It’s about the government possibly taking part of their Social Security money if they have unpaid student debt (meaning, if they once took out a loan to study and never paid it back).
About 452,000 people over the age of 62 are in this situation. The government says that if it starts collecting those debts again, it could take up to 15% of the money those people receive each month as part of their retirement.
Why would the government do that?
When someone borrows money from the government to study, they have to pay it back. If they don’t, they go into what’s called “default,” which is when you stop paying what you owe. During the COVID-19 pandemic, the government paused those collections because many people lost their jobs or didn’t have enough money.
But in May 2025, the President of the United States, Donald Trump announced that he wanted to start collecting those debts again through Social Security checks which caused fear in many retirees.
Then, in June 2025, the government stopped this measure again. However, experts say that this pause could end at any moment, so no one knows if the money will be taken again soon or not.
Will all retirees be affected?
This won’t happen to all retirees, just some. So, to know if you or someone you know will be affected by this situation, here’s the explanation: In total, there are 1.3 million retired people who still have student debt. Out of that group, about 450,000 are in default, meaning they stopped paying, and these are the people who are at risk of having part of their monthly Social Security check taken.
For many of these people, the Social Security check is their only income, the only money they get each month to pay for important things like food, medicine, rent, or utilities. So, it will be a problem if the government takes part of this money.
How much money would be taken?
If the government starts taking money again, it could take 15% of the monthly check. For example: If a person receives $1,523 a month (which is what many people get from Social Security on average), the government could take about $115 each month.
That might not sound like a lot of money, but for an older person with few resources, it can make a big difference. It could be exactly what they need to buy their medicine or pay for gas or electricity.
Is it happening already?
No. For now, the government has paused the collection of these debts again. But no one knows how long that pause will last. Some experts believe they could start collecting again at any moment, and that worries many of those at risk.
What can affected people do?
If a retiree is worried about this, there are a few things they can do to protect their money:
- Ask for help due to financial hardship: If someone is sick, has many expenses, takes care of a family member, or lives in poverty, they can send a request to the government so that money isn’t taken from their check. But they must show proof of their situation, like medical bills or housing documents.
- Rehabilitate or consolidate their debt: Rehabilitating means making nine small payments (that a person can afford) to get out of default. On the other hand, consolidating means combining all the debt into a new loan with better conditions to make it easier to pay.
Basically, many retirees in the U.S. could lose part of their retirement benefits from Social Security due to their unpaid student debts. So, the best thing to do is to keep searching for information on the final decision about the collection of these debts. Do you think the government’s decision is right?