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Loan Default

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Student Loan Defaults Loom For Millions As Trump Administration Resumes Debt Collections Student Loan Defaults Loom For Millions As Trump Administration Resumes Debt Collections
Student Loan Defaults Loom For Millions As Trump Administration Resumes Debt Collections Millions of federal student loan borrowers are weeks away from default as serious delinquencies surge to record highs after the Trump administration resumed debt collections, economists say. Nearly one-third (31%) of federal borrowers with a payment due were at least 90 days late in April, according to a new report from TransUnion released on Tuesday, June 24. That's nearly triple the pre-pandemic rate of 11.7% and the highest figure on record. Just 0.3% of borrowers were in default by April, but with nearly 5.8 million now more than 90 days late, many are on the brink of defaulti…

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by Chris Spiker
Schools
Millions To Have Paychecks Garnished As Federal Student Loan Collections Restart Millions To Have Paychecks Garnished As Federal Student Loan Collections Restart
Millions To Have Paychecks Garnished As Federal Student Loan Collections Restart Millions of Americans may soon have their wages garnished as the Trump administration resumes student loan collections paused since the start of the COVID-19 pandemic. About 5.3 million borrowers are set to receive wage garnishment notices in the summer of 2025, according to the Department of Education. The federal government officially restarted student loan debt collections on Monday, May 5. Nearly 195,000 borrowers began receiving 30-day warning letters from the Treasury Department. Their Social Security or other federal benefits will be seized through the Treasury Offset …

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by Chris Spiker