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Federal student loans defaulted by seniors won’t result in Social Security cuts, according to a pause announced June 2, 2025. The Trump administration reversed course on resuming collections after criticism over impacts on retirees relying on fixed incomes. Over 452,000 borrowers aged 62+ owed payments, risking benefit garnishment under original April plans. The $1.6 trillion federal loan portfolio faces 25% default by year-end, adding urgency to repayment outreach. Critics warn the pause delays addressing systemic debt but applaud protection for vulnerable populations.