Can federal student loans garnish pensions?

Education Law Forum
1

Quick question – is it possible for federal student loans to garnish a pension? I haven’t received any notices, but just curious if they can do this.

2

Yes, federal student loans can garnish up to 15% of certain pensions or Social Security benefits if the debt is unpaid.

3

Zuri said:
Yes, federal student loans can garnish up to 15% of certain pensions or Social Security benefits if the debt is unpaid.

Does that include all pension types, or just specific ones?

4

@Cael
Usually, it includes federal pensions, but private pensions might not be affected. Always best to double-check with a legal expert.

5

The Treasury Offset Program (TOP) can take a portion of your pension if you owe on federal student loans.

6

Cary said:
The Treasury Offset Program (TOP) can take a portion of your pension if you owe on federal student loans.

TOP? Never heard of that – does it cover all income sources?

7

Sam said:

Cary said:
The Treasury Offset Program (TOP) can take a portion of your pension if you owe on federal student loans.

TOP? Never heard of that – does it cover all income sources?

It mainly applies to federal income, like Social Security and pensions, but not all income types are included.

8

They can also take a portion of Social Security if it’s for federal student loans, but SSI is protected from garnishment.

9

Ashwin said:
They can also take a portion of Social Security if it’s for federal student loans, but SSI is protected from garnishment.

That’s good to know! Didn’t realize there were protections for SSI.

10

If you haven’t missed any payments yet, you probably don’t have to worry about garnishment. They’d send warnings first.

11

Nico said:
If you haven’t missed any payments yet, you probably don’t have to worry about garnishment. They’d send warnings first.

Thanks! I haven’t received anything yet, but wanted to understand my options.

12

Definitely consult a lawyer if you’re concerned. They can help protect your pension if garnishment becomes a real possibility.

13

Holland said:
Definitely consult a lawyer if you’re concerned. They can help protect your pension if garnishment becomes a real possibility.

Good advice – a local attorney would know more about specific protections in your state too.