The United States Congress Democratic Senator is promoting a new bill that seeks to prevent senior student loan borrowers and handicapped borrowers from being released from social security payments after default. This has occurred in the context of the recovery in student loan default rates and the Government ' s restructuring of the repayment system.

Three senators proposed a bill.

On Monday, Bernie Sanders, Elizabeth Warren and Ed Marky co-sponsored a bill aimed at limiting the federal Government ' s recourse to particular default borrowers. The Bill focuses on two groups of people: senior borrowers and handicapped borrowers.

Saunders indicated that many older persons could not afford medical care, prescription drugs, food and housing costs, and that the continued withholding of social security in such circumstances would further stress.

The default rate is high.

The latest Family Debt Report of the Federal Reserve in New York shows that the student loan default rate for the second quarter of 2026 was 10.6 per cent, up from 10.3 per cent in the first quarter. Before the outbreak, it was about 11%. According to researchers, current data indicate a temporary stabilization of the default rate.

  • 2026 Second quarter default rate 10.6%
  • 2026: 10.3% in the first quarter
  • It's about 11% before the outbreak.

However, researchers have also mentioned that the rate of arrears is likely to rise again, inter alia, because the SAVE repayment plan for the Biden period has been cancelled. The scheme would have provided borrowers with lower monthly provisions and reduced the time required for debt relief.

The Government has not yet indicated the recovery time

The Trump government announced in May 2025 that it would resume the mandatory recovery of student loans in default. A few weeks later, the Government announced a moratorium on social security deductions, stating that it was intended to allow time for the adjustment of the repayment system.

In January of this year, the United States Department of Education also announced a moratorium on salary deductions in order to move forward with the Trump Government's student loan repayment reform. To date, the Government has not indicated when these moratoriums will end.

The US government is now pushing more than 7 million borrowers out of the SAVE program. Many borrowers have indicated that the adjusted monthly bill has risen and are concerned about the consequences of withholding wages and federal benefits in the event of default.