Potential Social Security Garnishment in 2026: Two Legal Strategies for Retirees to Evade It
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 8 hour ago0mins
Impact of Social Security on Poverty: Social Security is crucial for retirees, lifting 22 million Americans above the poverty line in 2023, with a significant impact on seniors, reducing their poverty rate from an estimated 37.3% to 10.1%.
Changes Under Trump Administration: The Trump administration has implemented significant changes to Social Security, including a fivefold increase in the clawback rate for overpayments and a shift to electronic payments, affecting over 500,000 recipients.
Potential Garnishment for Student Loans: There is a possibility of reinstating garnishment of Social Security benefits for delinquent federal student loan borrowers, which could affect around 452,000 beneficiaries, with a potential rate of up to 15%.
Options to Avoid Garnishment: Beneficiaries facing potential garnishment have legal options to avoid it, including applying for Total and Permanent Disability discharge or demonstrating financial hardship to the Department of Education.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
