You’d think that by the time someone reaches retirement, their days of worrying about student loans would be long gone.
But for hundreds of thousands of older Americans, that’s far from reality.
Instead, many are facing the very real threat of having their Social Security checks slashed—because of student loans they took out decades ago.
Collections Restart After Pandemic Pause
After a long pandemic-era pause, the federal government is resuming aggressive collection tactics on defaulted student loans.
The Trump administration recently announced that, starting May 5, it would begin reclaiming overdue debts through automatic methods.
That means garnishing wages, tax refunds, and even Social Security payments—yes, including retirement and disability benefits.
This marks the end of a more forgiving period that began under the Biden administration during COVID-19, which temporarily shielded borrowers from these harsh consequences.
Older Borrowers Carry Massive Student Debt
According to the National Consumer Law Center, Americans aged 60 and over now hold a jaw-dropping $125 billion in student loans.
That’s six times more than they owed just two decades ago.
The result? A massive spike in seniors having their Social Security garnished—from just over 6,000 in 2001 to nearly 200,000 by 2019.
It’s a silent financial emergency, and it’s not going away anytime soon.
One Woman’s Story: “I Could Never Pay It Off”
Take Christine Farro, a 73-year-old retired child welfare worker from California.
Her Social Security payments were already garnished once, and she’s bracing for it to happen again.
Despite working nights, weekends, and essentially running herself ragged, the debt never disappeared.
Farro’s student loans go back 40 years.
As a single mom, she borrowed for her bachelor’s in developmental psychology, and later a master’s, hoping for a better income.
But her paycheck never matched her debt.
At one point, she was paying $1,000 a month—but the interest just kept piling on.
Today, her balance has ballooned to an unbelievable $250,000.
When she reached out for help? The only advice she got was: “Move to a cheaper state.”
Farro, who now rents a tiny 400-square-foot unit from a friend, felt utterly disconnected from the people offering that advice.
“I realized I was living in a different reality than they were,” she said.
Tens of Thousands Facing the Same Fate
She’s far from alone.
A January report from the Consumer Financial Protection Bureau estimated that around 452,000 people aged 62 and older have defaulted on their student loans.
Many of them are likely to be caught up in the Department of Education’s renewed collection efforts this year.
“There Won’t Be Any Frills”: Another Retiree Speaks Out
Linda Hilton, a 76-year-old retired office worker in Arizona, already experienced garnishment before the pandemic.
She’s not happy about it returning, but she’s prepared.
“It’s going to mean restrictions,” Hilton says.
“No more travel. No more little extras. There won’t be any frills.”
“I Don’t Know What More I Can Do”
Debbie McIntyre, a 62-year-old teacher in Kentucky, is also in danger of having her wages garnished.
Her husband has been out of work for years, and they’ve been surviving on her paycheck and credit cards.
With rent going up by $300 soon, she’s panicking.
“I’m scared to even check my balance,” she admits.
“I’ll never get out of this hole.”
“A Broken System Full of Flaws”
According to Braxton Brewington of the Debt Collective, seniors like Farro, Hilton, and McIntyre represent a larger, broken system.
He says many older borrowers have already repaid their original loans—sometimes multiple times—but the interest and fees keep them trapped in debt.
“We hear from people who are skipping meals, splitting pills, or cashing out their retirement just to survive,” Brewington shares.
Some even end up homeless.
Even With Protections, Seniors Still Suffer
Federal law is supposed to protect a portion of Social Security income—$750, to be exact—from garnishment.
But let’s be real: That’s not enough to live on, and it leaves many seniors well below the poverty line.
Some borrowers have already been notified that collections will restart.
Others are living in constant fear, waiting for the other shoe to drop.
A Complicated Future for Borrowers
To make matters worse, President Trump recently signed an executive order to dismantle the Department of Education altogether.
That has led to mass layoffs, making it even harder for borrowers to get answers or support.
What comes next is uncertain—but one thing is clear: America’s student debt problem doesn’t end at graduation.
For many older Americans, it follows them right into retirement.