This Student Loan Debt Rule Could Slash Your Social Security Check—Here’s What to Know!

Alright, so here’s the deal. If you’ve got federal student loans that you haven’t been able to pay back, you might be worried the government will start grabbing money right out of your Social Security check. Yeah, that sounds pretty rough, but let’s break it down so you know exactly what’s going on.

How Much Can They Actually Take?

If you’re in default on your student loans—which basically means you haven’t been paying them for a while and haven’t made any new payment plans—the government can take up to 15% of your Social Security money to cover what you owe.

But here’s the good part: they can’t just leave you high and dry. The law says you’ve gotta be left with at least $750 a month after they take their cut. So, they can’t leave you with less than that.

Here’s how it looks in real life:

• If you get $2,000 from Social Security each month, 15% is $300. So, they can take $300, and you still get $1,700.

• If you’re getting $1,000, 15% is $150, but because they can’t leave you with less than $750, they’d take up to $250 max (to leave you that $750).

But Wait—$750 Isn’t Much!

Here’s where it gets a little frustrating. $750 a month? That’s barely enough to cover basics like rent, groceries, and bills. Especially if you’re living on your own, that’s below the poverty line for seniors. The federal poverty level for someone 65 or older is around $1,133 per month.

So while there’s a rule to protect you, it doesn’t feel like enough. That’s why a lot of folks are worried about seniors and people with disabilities who really need more financial breathing room.

What Can You Do to Protect Yourself?

If you’re sweating about your Social Security getting clipped because of student loans, don’t just cross your fingers. There are things you can try:

• See if you qualify for income-driven repayment plans—these can make your monthly payments way smaller based on what you actually earn.

• You could try loan rehab or consolidation to fix your default status.

• Check if you can get a financial hardship exemption if money’s really tight.

• And seriously, reach out to a financial advisor or your loan servicer—they’re there to help you figure it all out.

It’s scary knowing some of your Social Security could be taken for student loans, but knowing what’s up means you’re not caught off guard. The more you know, the better you can protect yourself.

If you or someone you care about is in this spot, get informed and get help. You don’t have to deal with this alone.