Social Security Checks at Risk: What Seniors Need to Know Before June 2025

Beginning with benefit payments issued in June 2025, millions of older Americans who are behind on federal student loans will see up to 15 percent of their Social Security income diverted to satisfy that unpaid debt. The Department of Education has already mailed some 195,000 collection notices, and every one of the roughly 5.3 million borrowers in default is expected to receive similar warnings over the summer.

At Jeffrey Glassman Injury Lawyers, we understand how disruptive and frightening this reduction can be. Social Security Disability Insurance is often the sole or primary source of income for retirees and for individuals living with disabilities. Below, we break down why the garnishments are restarting, who is most at risk, and, most importantly, what legal and financial tools you still have to protect your monthly check.

The Treasury Offset Program Is Back

The government’s authority to seize part of a federal benefit check stems from the Treasury Offset Program (TOP), a cross-agency debt collection system initially paused in March 2020 to alleviate pandemic-era hardships. That pause formally ended in October 2023. After a phased “ramp-up” period, the Education Department confirmed it would begin large-scale Social Security offsets this June.

Current policy permits the government to withhold 15 percent of a monthly benefit, but it must leave a “protected payment” of at least $750. Any amount above that floor is fair game once the garnishment begins.

Why Older Borrowers Are Especially Vulnerable

Federal data show that approximately 2.9 million Americans aged 62 or older still hold federal student debt, and roughly 452,000 are already in default. Many are parents or grandparents who signed Parent PLUS loans to help children through college; others returned to school mid-career, only to discover that fixed retirement income makes repayment nearly impossible.

Because Social Security benefits grow modestly or not at all each year, the loss of 15 percent can push fixed-income households below the subsistence level. Clients tell us the difference is often groceries, prescription drugs, or rent versus eviction.

What Happens After You Receive a Notice

The collection letter, usually headed “Notice of Intent to Offset”, outlines the amount past due, the 60-day window to act, and the date garnishment will begin. If you receive such a letter:

• Do not ignore it. Once the deadline passes, offsets start automatically.
• Check the default status. Errors happen; confirm the loan ID and balance match your records.
• Gather proof of hardship (medical bills, budget statements) if you plan to seek a temporary suspension.
• Act within 60 days. Time is genuinely short this year because June offsets are already scheduled.

Options to Stop or Reduce the Garnishment

Although the policy feels draconian, borrowers have several legal “pressure valves” that can either halt cuts or shrink them dramatically:

• Fresh Start Initiative. For a limited time, Fresh Start allows you to exit default with a phone call or online request, restoring your loans to good standing and halting TOP collections for a year while you select a repayment plan.
• Loan Rehabilitation. A nine-month program that removes the default notation after you make nine on-time “reasonable and affordable” payments, calculated as 15 percent of discretionary income (often as little as $5-$20 per month for retirees).
• Income-Driven Repayment (IDR) Plans. Switching to an IDR resets the payment to a sliding scale based on household income and size. For many Social Security recipients, that means $0 per month, which also stops TOP offsets after the plan is approved.
• Economic Hardship Waiver. If garnishment would leave you unable to meet basic expenses, those $750 protections are often far too low; you can request a hardship waiver directly from the Treasury Department. Decisions are made on a case-by-case basis; strong documentation is essential.
• Disability Discharge or Public Service Options. Veterans with service-connected disabilities, borrowers certified totally and permanently disabled, or those who have met public-service forgiveness criteria, can discharge the loan entirely. That ends garnishment for good.

Political and Economic Fallout

Consumer-advocacy organizations, including the National Consumer Law Center, condemn the June restart as “punitive and harmful to vulnerable people already facing economic hardship.” Analysts warn of ripple effects, including reduced consumer spending, increased reliance on food stamps, and mounting medical debt among retirees. As politics heat up, expect challenges in Congress and possibly the courts—but none of that will help if your check is slated for reduction next month.

Steps to Take Right Now

• Open every letter from the Department of Education or your loan servicer. Deadlines can be as short as 30 days for specific appeals.
• Create (or log into) your Federal Student Aid account at studentaid.gov to verify loan status.
• Apply for Fresh Start, the fastest default-exit route—directly through your servicer’s website or by phone.
• Compile a detailed monthly budget to support any hardship waiver.
• Keep copies of all forms, letters, and confirmation numbers for your records.

If you feel overwhelmed, contact legal counsel as soon as possible. Delays shrink your options, especially once offsets have started.

How Jeffrey Glassman Injury Lawyers Can Help

Although we are best known for personal injury advocacy, our firm also helps Massachusetts residents navigate complex benefit-reduction issues that jeopardize their health, housing, or independence. We can:

• Review your Social Security and loan records to confirm whether the garnishment is lawful.
• Assist in filing Fresh Start, IDR, or hardship-waiver paperwork—ensuring forms are complete and evidence is compelling.
• Negotiate with servicers to secure the lowest possible rehabilitation payments.
• Pursue administrative appeals if the government fails to honor statutory protections such as the $750 minimum.
• Coordinate with consumer-bankruptcy counsel if discharge or consolidation becomes advisable.

Our goal is to safeguard every dollar of the retirement income you earned. Contact Jeffrey Glassman Injury Lawyers at (617) 777-7777 or use our secure online form to schedule a complimentary consultation.

Bottom Line

The June 2025 restart of Social Security offsets is not just another policy shift; it is a direct hit to the monthly income of hundreds of thousands of older adults living on the edge of poverty. Yet, proactive borrowers can still avoid or minimize those cuts by utilizing federally authorized programs if they act quickly.

At Jeffrey Glassman Injury Lawyers, we believe no senior should have to choose between student-loan debt and medicine, rent, or groceries. Let us help you understand your rights, prepare the most vigorous possible application, and, where necessary, challenge unlawful garnishments.

Time is short; contact us today. We are available 24/7 at (617) 777-7777 or through our secure online form.