Just weeks after announcing a 100% withholding rate on new overpayments of benefits, the Social Security has slashed the rate down to 50% for certain beneficiaries.

Yet that clawback on monthly benefit checks may still cause a financial burden for individuals who are affected, experts say.

For new overpayment notices sent on or after April 25, the 50% default withholding rate will apply to so-called Title II benefits, which include retirement, survivors and disability insurance, according to an emergency message released by the Social Security Administration.

The withholding rate for Supplemental Security Income benefits remains 10%.

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“Obviously, it’s better not to lose all of your income,” said Kate Lang, director of federal income security at Justice in Aging, a national organization focused on fighting senior poverty.

“But if you’re relying on your benefits to pay your rent or your mortgage and buy food, losing half of that income is going to be devastating and can still result in people becoming homeless,” Lang said.

The Social Security Administration had previously announced that it would increase the default withholding rate for overpayments to 100%. Under President Joe Biden’s administration, the default withholding rate had been dropped to 10% of a beneficiary’s monthly benefit or $10 — whichever was greater. Generally, the rate beneficiaries are subject to is based on the terms at the time they were notified.

“In the last 100 days, we’ve gone from as low as 10 [percent] to 100 and now to 50,” said Richard Fiesta, executive director of the Alliance for Retired Americans.

The 100% withholding rate was “ridiculously draconian and cruel,” Fiesta said. The Social Security Administration had said the change to that full recovery rate would generate about $7 billion in program savings in the next decade, based on estimates from the chief actuary.

Yet even with the default withholding rate cut in half, beneficiaries may still struggle financially.

“Losing 50% [of benefits] for a lot of people could put them into immediate economic hardship,” Fiesta said.

In most cases, it wasn’t the beneficiary’s fault that they were overpaid, Fiesta said. “They shouldn’t be put in a worse situation because of something they never caused in the first place,” he said.

Millions of borrowers who signed up for the Biden administration’s new repayment plan, known as SAVE, were caught in limbo after GOP-led lawsuits managed to get the plan blocked in the summer of last year. Many of those borrowers will now have to switch out of a Biden-era payment pause and into another repayment plan that will spike their monthly bill.

In recent months, the Trump administration has eliminated the forgiveness provision from some student loan repayment plans.

It also terminated staff at the Education Department, including many of the people who helped assist borrowers. Now some student loan borrowers report waiting hours on the phone before being able to reach someone about their debt. (The Trump administration has told defaulted borrowers to contact the department for options on getting current.)

“The timing of the layoffs is unfortunate, given the need for borrowers to get help,” said higher education expert Mark Kantrowitz, who added that he’s heard from people stuck waiting on hold as long as eight hours to speak with someone at the department or their loan servicer.

In addition to garnished paychecks and benefits, the millions of borrowers who are already late on their payments may see their credit scores tank by as much as 129 points as the Education Department ramps up collection activity, VantageScore recently wrote.

Meanwhile, the Federal Reserve predicted in March that some people with a delinquency could see their scores fall by as much as 171 points. Credit scores typically range from 300 to 850, with around 670 and higher considered good.

Lower credit scores can lead to higher borrowing costs on consumer loans such as mortgages, car loans and credit cards.

“We’ve been seeing clients with delinquent accounts who reached out after noticing a drop in their credit scores,” said Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York.

She said one client hasn’t made a payment on her student debt since last year because she can’t afford her $200 monthly bill.

“She’s making $45,000 and living in New York City,” Rodriguez said. “Every month, she’s in the red.”

Ethan Bianco, 17, waited right up until the May 1 deadline before deciding which college he would attend in the fall.

The senior at Kinder High School for the Performing and Visual Arts in Houston was accepted to several schools, and had whittled down his choices to Vanderbilt University and University of Texas at Austin. Ultimately, the cost was a significant factor in his final decision.

“UT is a much better award package,” he said. In-state tuition for the current academic year is $10,858 to $13,576 a year, which would be largely covered by Bianco’s financial aid offer.

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Vanderbilt, on the other hand, consistently ranks among the best private colleges for financial aid and promises to meet 100% of a family’s demonstrated need.

The school initially offered Bianco $35,000 in aid, he said. With that package, “it would be about $40,000 more for my family to attend Vanderbilt per year.”

However, he successfully appealed his award package and leveraged private scholarships to bring the price down further — and committed to Vanderbilt on National College Decision Day.

Soaring college costs and looming student debt balances have pushed this trend, and this year, there are added concerns about the economy and dwindling federal loan forgiveness options. As a result, this year’s crop of high school seniors is more likely to choose local and less-expensive public schools rather than private universities far from home, Franek said.

Price is now a bigger consideration among students and parents when choosing a college, other reports also show. Financial concerns govern decision-making for 8 in 10 families, according to one report by education lender Sallie Mae, outweighing even academics when choosing a school

“Choosing a school is a personal and individual decision,” said Chris Ebeling, head of student lending at Citizens Financial Group. Along with academics and extracurriculars, “equally important is the cost,” he said. “That needs to be weighed and considered carefully.”

On National College Decision Day, Carlos Marin, a senior at Milby High School, also in Houston, enrolled at the University of Houston-Downtown. Marin, 17, who could be the first person in his family to graduate from college, said he plans to live at home and commute to classes.

“The other schools I got into were farther away but the cost of room and board was really expensive,” Marin said.

College costs have risen significantly in recent decades, with tuition increasing 5.6% a year, on average, since 1983 — outpacing inflation and other household expenses, according to a recent report by J.P. Morgan Asset Management.

Deep cuts in state funding for higher education have also contributed to the soaring price tag and pushed more of the costs onto students. Families now shoulder 48% of college expenses, up from 38% a decade ago, J.P. Morgan Asset Management found, with scholarships, grants and loans helping to bridge the gap.

Nearly every year, students and their families have been borrowing more, which boosted total outstanding student debt to where it stands today, at more than $1.6 trillion.

A separate survey by The Princeton Review found that taking on too much debt is the No. 1 worry among all college-bound students.

Incoming Vanderbilt freshman Bianco qualified for a number of additional private scholarships and even received a free laptop from AT&T so that he could submit the Free Application for Federal Student Aid and fill out college applications. He said he is wary of taking out loans to make up for the difference.

“I believe that student loans can be beneficial but there’s also the assumption that you’ll be in debt for a very long time,” Bianco said. “It almost becomes a burden that is too much to bear.”