Student Loan Borrowers in Default Anticipate Collection Measures

Millions of federal student loan borrowers in default are expected to face collection actions, including wage garnishment and tax refund seizures, starting next year. Over 9 million borrowers have defaulted since pandemic forbearance ended, accumulating $234 billion in debt, with many more behind on payments. This resumption of collections will significantly impact the financial well-being of a large segment of borrowers.