Story perspectives

Student Loan Defaults Soar: 5.3 Million in Trouble

5/15/2025

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Summary

Story summary

Student loan delinquencies have surged, with 5.3 million borrowers in default and 4 million late on payments.
Collections, including wage garnishments, will resume on May 5, 2025.
The Ending Administrative Wage Garnishment Act seeks to protect vulnerable borrowers from aggressive collection practices.
Many borrowers experience severe credit score drops, hindering loan acquisition.
Mississippi and Alabama report the highest delinquency rates, surpassing 30%.

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Story summary

Student loan delinquencies have surged, with 5.3 million borrowers in default and 4 million late on payments.
Collections, including wage garnishments, will resume on May 5, 2025.
The Ending Administrative Wage Garnishment Act seeks to protect vulnerable borrowers from aggressive collection practices.
Many borrowers experience severe credit score drops, hindering loan acquisition.
Mississippi and Alabama report the highest delinquency rates, surpassing 30%.