Millions Face Student Loan Default
Student loan defaults rise sharply after payment pauses end, affecting millions of borrowers.
Many student loan borrowers now face tough financial times. Almost one in five borrowers are in default. This means they are not making their payments. A recent count shows 9.5 million people are in this situation. They owe a total of $233.3 billion.
This problem grew after federal student loan payments restarted. The government stopped payment pauses. It also ended the SAVE Plan. These changes made it harder for some people to pay back their loans. Now, many borrowers struggle to keep up.
Defaulting on a loan has serious results. It hurts your credit score. This makes it hard to borrow money later. It can also lead to wage garnishment. The government might take money directly from your paycheck. Understanding your options is important. Talk to your loan servicer if you have trouble paying.
Source: Fox Business
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