Social Security Benefits Offset Temporarily Paused, But May Begin Again Soon!
On May 5, 2025, the federal government restarted collections on federal student loans that are in default. That means if you haven’t made a payment on your federal student loans in more than 270 days, you could soon face serious consequences, including losing your tax refunds, a portion of your wages, and even some of your Social Security benefits. The government has said they will not be taking Social Security benefits right now, but this may restart again at any time!
Take steps now to make sure your loans aren’t in default! If you are in default, act quickly to get out of default and avoid collections
If you have defaulted on your federal student loans and you receive Social Security Disability or retirement benefits, the federal government may withhold up to 15% of your benefits each month to pay back your student loan debt, as long as your remaining monthly benefit stays above $750. This is called an offset. The offset continues until your defaulted loan is paid in full, you are removed from default, or you are able to get the Department of Education to stop the offset.
The government cannot take Supplemental Security Income (SSI) or Veterans benefits to collect your defaulted student loan debt. You should get a letter before your benefits are taken for the first time, giving you information about requesting a review to try to stop the offset. The government will send you a more detailed warning letter 30 days before the offset occurs, letting you know when the offset will begin, the amount of offset, and the contact information for the federal agency to which the debt is owed.
If you didn’t get a letter before your benefits were taken or want to see if you are on the list to have your benefits taken, call the Treasury Offset Program at 1-800-304-3107.
Make sure your contact information is updated with the Department of Education and your loan servicer. Many people who don’t get notice that their tax refunds have been taken have moved and failed to let the government know their new address. Don’t miss out on important updates. Call your loan servicer or log in to your studentaid.gov account to update your contact information.
Can I stop the government from taking my Social Security?
If you get a letter from the federal government letting you know that your benefits will be taken to pay back your student loan debt, don’t ignore it. You can take steps to try to stop the offset by requesting a review.
For instructions on how to submit a request for review, contact the Department of Education Default Resolution Group. You can call the Default Resolution Group at 1-800-621-3115. You can find more information and set up an account with the Default Resolution Group to manage your requests online at myeddebt.ed.gov.
The process for challenging Social Security offsets may be changing. There may be changes coming to the way the government collects student loan debts. Because of these changes, the steps you have to take to try to stop the government from taking your Social Security benefits may change as well. We will update this page as we get more information, but you can check for further updates on studentaid.gov.
Are you not able to work due to a disability?
If you are not able to work due to a disability, you may be able to have your federal student loan debt canceled or forgiven through the Total and Permanent Disability (TPD) program. You do not have to be receiving Social Security Disability benefits in order to qualify for loan forgiveness.
There are a few ways you can qualify for TPD, but the easiest way is to have a medical professional fill out the TPD form confirming your disability. Medical professionals who can fill out the TPD form include doctors, nurse practitioners, physician assistants, and licensed psychologists. The TPD application is very easy to fill out and submit. If you apply for TPD, you may be able to stop any collections while you wait for the Department of Education to review your application. For more information, see our page on applying for TPD loan forgiveness.
What will the government consider when reviewing my request to stop the offset?
The government will usually consider whether or not you have any defenses to paying back your student loan debt.
Some of the main defenses include:
- you are totally and permanently disabled,
- you already repaid the loan,
- it is not your loan or there is some other reason why you do not owe the money,
- you have already entered into a repayment agreement with the loan holder and are making payments as required,
- you have filed for bankruptcy and the case is still open or the loan was discharged in bankruptcy,
- your school lied to you about the program or the loans you were taking out,
- the school failed to pay you a refund after you withdrew from classes,
- the loan is not enforceable, for example because of forgery or other reason, or
- you are eligible for a closed school discharge.
Will the government stop the offset because of my financial hardship?
In some cases, the government will stop a Social Security benefits offset due to your financial hardship. If you are facing a significant and urgent hardship, such as an eviction, foreclosure, or utility shut-off, make sure you send proof of this to the government to try to stop the offset.
For more information on the collection of federal student loan debt, visit the Federal Student Aid website page on collections.
