Millions of U.S. Student Loan Borrowers Face Collections for Defaulted Loans

Millions of student loan borrowers in the United States are facing severe collection measures, including wage garnishment and seizure of tax refunds, as early as next year. Since the pandemic forbearance expired last year, over 9 million borrowers have defaulted on a collective $234 billion in loans, with millions more experiencing late payments. Defaults began to rise in late 2025 and early 2026, with some states seeing more than a quarter of their borrowers in default.