Story perspectives

Trump’s Loan Overhaul Raises Payments, Hits Millions in Default

7/10/2026

Summary

Story summary

U.S. President Donald Trump’s student-loan overhaul began on July 1, 2026, raising monthly payments for borrowers.
Federal Student Aid reports that about 9 million borrowers are in default and 3.5 million are delinquent.
Jodi Sprague, 54, sees her payment rise from $404 to $1,100.
Shannon Brady, 43, says an $800 payment would make rent unaffordable.
The Department of Education paused involuntary collections on defaulted loans in January 2026 with no end date announced.

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Story summary

U.S. President Donald Trump’s student-loan overhaul began on July 1, 2026, raising monthly payments for borrowers.
Federal Student Aid reports that about 9 million borrowers are in default and 3.5 million are delinquent.
Jodi Sprague, 54, sees her payment rise from $404 to $1,100.
Shannon Brady, 43, says an $800 payment would make rent unaffordable.
The Department of Education paused involuntary collections on defaulted loans in January 2026 with no end date announced.