Student Loan Defaults Rise After Payment Pause Ends
Many student loan borrowers now face default as payment pauses end and a key repayment plan changes.
Student loan defaults are a growing problem. Almost 1 in 5 borrowers now miss payments. This affects 9.5 million people. They owe a total of $233.3 billion.
These numbers come after big changes. The government stopped pausing student loan payments. Also, the SAVE Plan for repayment ended. These shifts make it harder for many to pay back their loans.
Borrowers need to understand their options. Missing payments can hurt credit scores. It can also lead to more fees. Those struggling should contact their loan servicers. They can find out about different repayment plans.
It is important to act quickly. Finding the right plan can prevent default. This helps protect financial health for the future.
Source: Fox Business
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