The Education Department has a rude awakening for 5.3 million student loan borrowers: giving their info to debt collectors

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The Education Department has a rude awakening for 5.3 million student loan borrowers: giving their info to debt collectors

//travel-leisure.news-articles.net/content/2025/ .. rowers-giving-their-info-to-debt-collectors.html

Published in Travel and Leisure on Monday, April 21st 2025 at 18:06 GMT by Fortune
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

The Education Department will begin collection next month on student loans that are in default.

The article from Fortune discusses the challenges faced by student loan borrowers as they resume payments after a three-year pause due to the COVID-19 pandemic. The U.S. Department of Education has implemented a 12-month "on-ramp" period starting October 1, 2023, to ease the transition back to repayment, during which borrowers will not be reported to credit bureaus or considered in default if they miss payments. However, interest will still accrue during this period. The article highlights the concerns of borrowers like Sarah and Emily, who are struggling with the resumption of payments amidst rising living costs and stagnant wages. It also notes the potential for increased delinquency and default rates, as well as the political and economic implications of the student loan crisis.

Read the Full Fortune Article at:
[ https://fortune.com/article/student-loan-borrowers-education-department-debt-default/ ]

N※N

The Education Department has a rude awakening for 5.3 million student loan borrowers: giving their info to debt collectors