Core Insights - Social Security garnishments for delinquent federal student loans are set to resume in July 2026 for borrowers not enrolled in a new repayment plan called RAP [3][6][8] - The Department of Education has paused involuntary collections, including garnishments, since January 2026, with the aim of rolling out the new repayment plan [4][6] Current Status - The Trump administration initially paused Social Security garnishments in summer 2025, which was later extended by the Department of Education in January 2026 [4] - The new repayment plan under the Working Families Tax Cuts Act is expected to launch on July 1, 2026, after which collections may resume for those not in compliance [6] Financial Implications - The government can withhold up to 15% of monthly Social Security benefits from borrowers in default, with a minimum protection floor of $750 [7][8] - Approximately 452,000 recipients, many of whom are retirees on fixed incomes, could be affected by these garnishments [8] - Borrowers have until summer 2026 to rehabilitate their loans or file for disability discharge to avoid or reduce offsets [8]

-- These 10 College Majors Carry the Most Student Loan Debt What to Expect in Markets This Week What to Expect From Nvidia's GTC The Fed Will Almost Certainly Hold This Week See What Your State Is Paying for Gas Top Stories Some bachelor's degrees can cost more and force a student to borrow more. Photo by Leonard Ortiz/MediaNews Group/Orange County Register via Getty Images Close KEY TAKEAWAYS Hoping to take on the least amount of debt while in college? You might want to avoid these 10 majors. Almost half o ...