Can Defaulted Student Loans Reduce Your Social Security?

Yes — and many retirees are finding out the hard way.

After the pandemic pause ended, federal student loan collections resumed. Through the Treasury Offset Program (TOP), the government can withhold up to 15% of your monthly Social Security benefit.

In some cases, that can leave recipients with as little as $750 per month.

This episode explains what’s happening — and what you can do immediately to protect your income.

What You’ll Learn:

• How the Treasury Offset Program works

• Why Social Security benefits are being reduced

• Who is most at risk

• How much can legally be withheld

• Steps to prevent or stop the offset

• Options for resolving defaulted student loans

Why This Matters

For older Americans ...