Tags :student loan default crisis

U.S. Student Loan Defaults Hit Record High – What Borrowers Need to Know Recent data from the New York Federal Reserve reveals a troubling trend: student loan defaults have surged to historic levels, with over 9 million borrowers expected to see their credit scores decline in Q1 2025. As of late 2024, 15.6% of federal student loans were delinquent, amounting to $250+ billion in unpaid debt. The end of COVID-19 relief programs, including the student loan payment pause, has left many borrowers struggling to resume payments. Since repayments restarted in Fall 2023, 63% of borrowers have made no progress in reducing their balances—signaling a growing financial strain. Why This Matters: The Credit Score Impact A student loan default can severely damage financial health: How to Protect Your Credit Score If you’re struggling with student loan payments, take action now:✅ Stay on...

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