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Collections are coming for millions of student loans in default
More than 9 million borrowers owe $234 billion and could face wage garnishment or tax refund seizures as collections resume, officials said.
- The Education Department prepares to resume collection measures next year for more than 9 million borrowers currently in default, who owe a collective $234 billion in student loans.
- Defaults began rising again in late 2025 and early 2026 after pandemic forbearance expired last year, ending the period when borrowers could pause payments without being classified as delinquent.
- Federal Reserve Bank of New York data shows 13% of loans defaulted in Louisiana and Mississippi, while the lowest state default rates reached 15% in Massachusetts, New Hampshire, Utah, and Wisconsin.
- Timothy Varro, an attorney with $375,000 in debt, said "I fear that unless something miraculous happens, I will default." Taylor Lewis owes $29,000 and faces potential collection measures after missing payments.
- Collections are expected to start next year, according to Betsy Mayotte, president of The Institute of Student Loan Advisors, as borrowers likely face severe measures such as wage garnishment and seizure of tax refunds.
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Collections are coming for millions of student loans in default • Rhode Island Current
A long-postponed reckoning could be coming soon for millions of student loan borrowers who are now faced with garnished wages and seized tax refunds as soon as next year. Since pandemic forbearance finally expired last year, more than 9 million borrowers already are in default, owing a collective $234 billion, and millions more are late […]
Collections are coming for millions of student loans in default • Maine Morning Star
A long-postponed reckoning could be coming soon for millions of student loan borrowers who are now faced with garnished wages and seized tax refunds as soon as next year. Since pandemic forbearance finally expired last year, more than 9 million borrowers already are in default, owing a collective $234 billion, and millions more are late […]
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Total News Sources13
Leaning Left10Leaning Right0Center1Last UpdatedBias Distribution91% Left
Bias Distribution
- 91% of the sources lean Left
91% Left
L 91%
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