Back to today’s briefing

Story perspectives

Student Loan Payments Resume, Millions Face Financial Strain

5/20/2025

46 5

Summary

Story summary

Student loan payments resumed in October 2023, creating financial stress for many borrowers.
Over 5 million borrowers are in default, with many unaware of their payment obligations.
The Education Department may garnish up to 15% of wages for borrowers over 270 days late.
Nearly 2 million applications for income-driven repayment plans are pending, causing confusion.
Borrowers should reach out to loan servicers for assistance and repayment options.

1 of 1

Story summary

Student loan payments resumed in October 2023, creating financial stress for many borrowers.
Over 5 million borrowers are in default, with many unaware of their payment obligations.
The Education Department may garnish up to 15% of wages for borrowers over 270 days late.
Nearly 2 million applications for income-driven repayment plans are pending, causing confusion.
Borrowers should reach out to loan servicers for assistance and repayment options.