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Home Business & Finance Economic Policies

Social Security payments could shrink for some recipients in June — here’s why todayheadline

June 1, 2025
in Economic Policies
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Social Security payments could shrink for some recipients in June — here's why
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Some Social Security recipients could see reduced payments this month due to a policy change allowing garnishment of benefits for unpaid student loans, NBC Philadelphia reported Sunday.

This follows an April 21 announcement from the Trump administration that the U.S. Department of Education would restart collection efforts on the nation’s $1.6 trillion student loan debt.

The report referenced a finding from the Consumer Financial Protection Bureau, which revealed that over 450,000 federal student loan borrowers aged 62 and older are in default and are likely receiving Social Security benefits.

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The timing of Social Security payments in June — set for the 3rd, 11th, 18th, or 25th — depends on factors such as the recipient’s birthdate and when they first started collecting benefits, according to the Social Security Administration.

Many recipients depend heavily on these payments to cover basic living expenses.

Nancy Nierman, assistant director of New York’s Education Debt Consumer Assistance Program, told NBC Philadelphia that affected individuals are understandably alarmed by this development.

For nearly five years, collection efforts on the student loan debt had been paused under pandemic-era relief measures that protected borrowers in default.

Before the COVID-19 pandemic, individuals received warning notices 65 days before garnishments began. Under the revised approach, borrowers now receive only 30 days’ notice before money is withheld.

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Experts quoted in the report explain that while a portion of Social Security payments — up to 15% — can be withheld to repay overdue student loans, recipients must still receive a minimum monthly amount of $750.

Tags: HeresJunePaymentsrecipientssecurityshrinkSocialtodayheadline
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