As pandemic-era repayment relief fades, delinquency rates for federal student loans hit alarming levels, with 31% of borrowers overdue as of April 2025. This represents a significant increase from 20.5% in February and nearly triples the delinquency rate before the pandemic. With projections showing that 1.8 million could default by July and even more following, the ramifications are severe, including significant drops in credit scores and potential wage garnishment. These trends illustrate the urgent need for strategic repayment solutions as borrowers face escalating financial challenges.
Nearly one in three federal student loan borrowers face the risk of default as delinquency rates reach alarming new heights, highlighting the urgent need for effective repayment strategies.
The surge in delinquency rates, with over 5.8 million federal student loan borrowers 90 days overdue, emphasizes the stark financial consequences that await those unable to meet payment obligations.
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