Story perspectives
6 Million Borrowers Face Default as Student Loan Collections Resume
6/25/2025
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Story summary
- Nearly 6 million federal student loan borrowers are over 90 days late on payments, facing potential default.
- Approximately 2 million borrowers may default by July, risking wage garnishment.
- The Education Department restarted collections in May, highlighting consequences for missed payments.
- Delinquent borrowers have experienced an average credit score drop of 60 points.
- In total, 43 million Americans owe over $1.6 trillion in student loans.
