Social Security checks may shrink for 450,000 older Americans in June over student loan defaults; payment dates to know

lmost half a million Americans could see reduced Social Security payments this month due to overdue federal student loan repayments, raising concerns about the financial security of older adults relying on these benefits.

Social Security payments at risk

According to a report by Newsweek, 450,000 Americans aged 62 and older are currently in default on their student loans. Many of these individuals depend on Social Security for their income.

After a pause on collections during the coronavirus pandemic, the Trump administration restarted aggressive debt collection efforts on May 5, including automatic deductions from Social Security benefits under the Treasury Offset Program.

The program allows the federal government to withhold up to 15 percent of a person’s Social Security payments to recover defaulted loans. For those receiving the average benefit of $1,976 monthly, this could mean a loss of nearly $300 every month.

Options to avoid garnishment

Those worried about garnishment have options to get back on track. Bethany Hubert, a financial aid specialist at Earnest, told Newsweek, "First, reach out to your loan servicer. They can guide you through available options like deferment, forbearance, or creating a flexible repayment plan."

Hubert also noted, "Programs like income-driven repayment can adjust your monthly payment to better match your budget."

Consequences of defaulting

Defaulting on student loans has broader consequences beyond garnishment. Borrowers lose access to benefits like deferment and forbearance, and they become ineligible for additional federal aid, including Pell Grants and new loans. Credit scores suffer as defaults are reported to credit bureaus, which can damage borrowers’ ability to finance major purchases or obtain credit.

What’s next for student loans?

Further changes may be on the horizon. The Trump administration is reportedly considering streamlining federal student loan repayment by reducing income-driven repayment options to just two plans. These proposals are part of the GOP’s One Big Beautiful Bill Act, which the House of Representatives passed recently.

Social Security payments: Here’s when you’ll get your check in June 2025

Millions of Americans who rely on Social Security benefits can expect their monthly payments to arrive on a staggered schedule throughout June 2025, depending on their birthdate and the type of benefits they receive.

Social Security payment dates for June 2025

The Social Security Administration (SSA) issues regular monthly payments to retirement, disability, and survivor benefit recipients, but the exact date varies based on when a person began receiving benefits and their birth date.

Here’s a breakdown of this month’s payment timeline:

June 3: Beneficiaries who began receiving Social Security before May 1997

June 11: Beneficiaries born between the 1st and 10th of any month

June 18: Beneficiaries born between the 11th and 20th of any month

June 25: Beneficiaries born between the 21st and 31st of any month

Those who filed their Social Security claims after May 1, 1997, are placed into one of the three Wednesday payment groups listed above, based on their birth date.

SSI recipients received June payments early

Supplemental Security Income (SSI), which is issued to low-income seniors and people with disabilities, is typically paid on the 1st of each month. However, since June 1 falls on a Sunday this year, SSI payments were disbursed early on May 30, 2025.