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The Trump administration will not garnish Social Security benefits for nearly half a million elderly borrowers in default on federal student loans.
The Department of Education announced plans in April to resume collections on defaulted student loans. President Donald Trump paused student loan collections in response to the COVID-19 outbreak in 2020, and former President Joe Biden maintained that pause through his term in office.
The government can legally garnish federal benefits for any borrowers in the rear, typically withholding roughly 15% from payments to beneficiaries, but Trump administration officials say they plan to extend alternative repayment options to more than 450,000 Social Security beneficiaries who are behind on payments.
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