Social Security to Resume Deferring Payments to Debt Collection
The process is designed to collect delinquent debts owed to federal and state agencies by intercepting payments.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
The Social Security Administration will resume debt collection that had been on hold since March 2020 due to the pandemic.
SSA will now once again withhold payments from individuals who have unpaid debts to apply the funds toward the repayment of the defaulted loan — a process known as garnishment. Before the pandemic, this impacted around 280,000 people with a collective debt balance of $2.7 billion, SSA said in a statement Thursday.