As of this year, Americans 60 and older carry an estimated $125 billion in student loans. Therefore, it may come as no surprise that around 452,000 of those borrowers who are 62 and older find themselves in default. Starting in June, the Trump administration will begin aggressive collection efforts paused during the COVID-19 pandemic. Whether they took out a loan for their education or a parent loan to help a child, hundreds of thousands could soon receive smaller Social Security checks.

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Will your Social Security check be impacted?

If you're among those who've been unable to repay student loans and currently receive Social Security, there's a chance some of your benefits will be seized to repay the amount owed.

Thanks to the Treasury Offset Program (TOP), the government can reduce your monthly benefits by up to 15%, although it cannot reduce your check to below $750. To add insult to injury, anyone whose check falls to $750 will find themselves $400 below the poverty threshold, a figure that has not been adjusted for inflation in 29 years.

Experts say taking funds from those least able to repay them will likely lead to hardship, such as food insecurity and problems paying for utilities and medication.

A staggering increase

Student loan debt among older Americans can be traced back to a dramatic rise in the cost of higher education, a trend that has been largely unchecked and has forced more people to borrow greater sums. 

While a borrower might believe student loan debt can be discharged through bankruptcy, that's not automatically true. Unlike most consumer debt, student loan lenders have a long-standing sweet protection deal with the U.S. government, making it far more challenging for a debtor to get out from under.

Many borrowers have already repaid the principal on their loans (sometimes more than once) but still owe money in interest and fees. 

Dismantling the Department of Education

Within his first 100 days in office, President Donald Trump signed an executive order calling for the dismantling of the Department of Education, a move that led to mass layoffs. However, a federal judge in Massachusetts has issued an injunction blocking the Trump administration's actions and ordering that fired employees be reinstated.

According to NBC News, the administration has already vowed to fight the order. The fact that the Trump administration is fighting the order makes it difficult to gauge how long it may take to get employees back into Department of Education offices if the administration loses its appeal. In the meantime, the lack of employees makes it far more difficult for borrowers seeking answers about their loans.

You may (or may not) receive notification

Some borrowers have already received notices informing them that the government plans to take money from their Social Security checks. Others will have notices sent to their last known address. However, a spokesperson from the Department of Education informed CNBC that borrowers might not get new notifications if they had previously been warned before the COVID-19 pandemic.

If you're concerned about your check

If you currently receive Social Security benefits and have defaulted on a student loan, your first step is to contact your loan servicer. If you don't know who your loan servicer is, you can find out by logging in to view your My Aid page on the Federal Student Aid website or by calling the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

Once you reach your loan servicer, they can guide you through your potential options, such as deferment, forbearance, or creating a flexible repayment plan. According to the Department of Education, it is possible to rehabilitate a student loan. Once done, the default status is removed from your loan, and the Treasury offset of your checks will be stopped.