Millions Struggle With Student Loan Payments
Many student loan borrowers now face serious financial problems, with millions unable to make their payments.
A big problem is growing for student loan borrowers. One in every five borrowers now cannot pay back their loans. That is what "default" means. This affects 9.5 million people. They owe a total of $233.3 billion.
This spike in defaults comes after some important changes. The government paused student loan payments for a time. That pause ended. Also, a program called the SAVE Plan stopped. These changes made it harder for people to manage their debt.
Falling into default has severe effects. It hurts a person's credit score. This makes it tough to get new loans or even rent a home. People facing this issue need to explore their options quickly.
Borrowers should contact their loan servicers. They can ask about different payment plans. Some plans base payments on income. This can help prevent further financial trouble.
Source: Fox Business
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