In June 2025, many Americans might find their Social Security payments reduced due to several policy changes and administrative decisions. These changes could affect retirees, disabled individuals, and others who rely on these benefits.
Here’s a breakdown of what’s happening and who might be impacted.
1. Student Loan Defaults Leading to Benefit Reductions
Approximately 450,000 Americans aged 62 or older, who are in default on federal student loans, may see their Social Security checks reduced starting this month.
The U.S. Department of Education has resumed garnishing Social Security benefits to recover unpaid student loans.
This means up to 15% of a beneficiary’s monthly payment could be withheld, provided that at least $750 remains after the deduction. This policy change follows the end of pandemic-era protections that had paused such collections.
2. Recovery of Overpaid Benefits
The Social Security Administration (SSA) is intensifying efforts to recover overpayments made to beneficiaries.
Previously, the SSA limited recoupment to 10% of a monthly benefit. However, starting in June 2025, the agency can withhold up to 50% of a beneficiary’s monthly payment to recover overpaid amounts.
This change affects approximately 1.5 million Americans who were overpaid due to errors or unreported changes in their circumstances.
3. Calendar Adjustments Affecting Payment Timing
Due to the way the calendar falls this year, Supplemental Security Income (SSI) recipients did not receive a payment in June. Since June 1st was on a weekend, the SSA issued June’s payment on May 30th.
As a result, there will be no additional SSI payment in June, which may require beneficiaries to budget carefully until the next payment on July 1st.
4. Administrative Changes and Their Impact
The SSA has undergone staffing reductions and office closures under the Department of Government Efficiency (DOGE).
These changes have led to longer wait times and reduced access to in-person services, potentially causing delays in benefit processing and customer service challenges.
Additionally, stricter identity verification procedures have been implemented, requiring some beneficiaries to visit SSA offices in person for certain transactions.
5. Repeal of WEP and GPO Provisions
On a positive note, the Social Security Fairness Act, signed into law in January 2025, repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
This change benefits many retired public workers, such as teachers and firefighters, who previously had their Social Security benefits reduced due to receiving a pension from non-Social Security-covered employment.
Affected individuals began receiving increased monthly payments in April 2025, along with retroactive payments dating back to January 2024.
What Beneficiaries Should Do?
- Check Your Payment Amounts: Review your Social Security statements to confirm the amounts received and any deductions made.
- Understand Garnishment Notices: If you receive a notice about benefit garnishment due to student loan defaults or overpayments, read it carefully to understand your rights and options.
- Plan for Payment Timing: Be aware of any changes in payment schedules due to calendar adjustments and plan your finances accordingly.
- Seek Assistance if Needed: If you’re facing challenges due to these changes, consider reaching out to financial advisors or legal aid organizations for guidance.
Conclusion
The recent changes to Social Security payments highlight the importance of staying informed about policy shifts and administrative decisions.
Beneficiaries should proactively monitor their benefits, understand the reasons behind any changes, and seek assistance when necessary to navigate these adjustments.