Millions of Student Loan Borrowers Face Collections as Defaults Rise

Millions of student loan borrowers who are currently in default or late on their payments are expected to face severe collection measures, including wage garnishment and seizure of tax refunds, starting next year. Over 9 million borrowers have already defaulted on a collective $234 billion in loans since the expiration of pandemic-era forbearance. The lack of clear communication from the government regarding the resumption of repayments has reportedly caught many borrowers by surprise.