Per the Employee Retirement Income Security Act of 1974 (ERISA), most employer-sponsored retirement plans, such as a 401(k), are protected from seizure by creditors in nearly all cases. However, according to the Debt Collection Improvement Act of 1996, up to 15% of your Social Security payments can be garnished to repay your federal student loan(s) should you default. Fortunately, the amount garnished cannot reduce your monthly benefit payment below $750.