Student loan borrowers in default could see their Social Security garnished by this alarming amount

As the Trump istration resumes student loan collections following a years-long pause due to the COVID-19 pandemic, new policy details reveal a more aggressive approach toward garnishing Social Security benefits-leaving some older or disabled borrowers with as little as $750 a month to live on.

This development represents a sharp break from the previous istration's efforts to shield vulnerable populations. Under President Joe Biden, the Department of Education had set a minimum monthly benefit of $1,883 for borrowers in default, ensuring they retained at least 150 percent of the federal poverty line. Yet, that safeguard is now being reversed.

According to a confirmation from the Department of Education to MarketWatch, the Trump istration's policy will revert to a floor established decades ago-allowing up to 15 percent of a borrower's monthly Social Security check to be withheld, as long as $750 remains. That threshold was set in 1996 and has not been adjusted for inflation since.

Advocates fear impact on low-income seniors and disabled borrowers