US EditionBehind on Student Loan Payments? Act Now as 5 Million Summer Defaults Loom
- As of mid-2024, millions of federal student loan borrowers face growing debts and defaults amid halted relief programs and administrative backlogs at the U.S. Department of Education.
- Legal challenges from Republican-led states stopped the SAVE repayment plan in July 2024, creating confusion and complicating repayment for nearly 8 million borrowers in forbearance.
- Despite assurances, some borrowers saw their loan balances increase by thousands due to conflicting communications from loan servicers like Mohela amid ongoing policy instability and staff reductions.
- Financial experts warned that millions were behind on payments by early 2024, with five million borrowers already in default and estimates suggesting up to 10 million could default during summer 2024.
- This situation leaves borrowers in financial uncertainty as the department restructures and legal proceedings continue, underscoring the need for borrowers to seek immediate guidance from loan providers.
29 Articles
29 Articles
Credit Scores Plunge in D.C. as Student Loan Delinquencies Surge
The end of the federal student loan payment pauses and the expiration of the Education Department's 12-month "on-ramp" period has caused credit scores to plummet, leading to a significant increase in delinquency and a potential loss of access to affordable loans, housing, and other necessities for millions of Americans, with D.C. being the hardest hit. The post Credit Scores Plunge in D.C. as Student Loan Delinquencies Surge appeared first on T…
The Virginian Pilot
Behind on student loan payments? Act now as 5 million summer defaults loom
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Student Loans: Borrowers See Balances Surge Despite Forbearance Promise
Student loan borrowers enrolled in the federal Saving on a Valuable Education (SAVE) plan reported unexpected increases in their loan balances, despite government assurances that no interest would accrue during their forbearance period. Affected individuals saw debts rise by thousands after receiving notices from the loan servicer Mohela indicating continued interest accrual, CNBC reported Monday. Newsweek has reached out to the Department of Ed…
Trump Administration Upends Student-Loan Repayments
Kelly Belt, 33, a high school life-sciences teacher in Provo, Utah, is ready and willing to repay her student loans. But like 8 million other U.S. borrowers on an affordable repayment plan created by former President Joe Biden, she has not been able to for nearly a year. Federal courts halted parts of the Biden plan last spring and summer after Republican-led lawsuits and in February an appeals court blocked it altogether. But when Belt tried to…
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