Millions Face Student Loan Default
A new report reveals millions of student loan borrowers now face default as payment pauses end.
Student loan defaults rise. Almost 10 million Americans now owe on their student loans. This means one in five borrowers cannot pay. They owe a total of $233.3 billion.
The government paused student loan payments during the pandemic. That pause ended recently. Many borrowers now struggle to restart payments. Some rely on plans like the SAVE Plan. But the government stopped that plan too.
This situation affects many families. People fall behind on payments. This can hurt their credit scores. It makes it harder to borrow money later.
Borrowers should look at all their options. They can talk to their loan servicers. They might find a payment plan that works for them.
Source: Fox Business
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