Tue, May 6, 2025
Mon, May 5, 2025

Millions of student loan borrowers head to collections as delinquency rates soar over 20%

Some borrowers will have wages and benefits garnished, putting even more strain on an already unstable economy.

The article from Fortune, published on May 5, 2025, discusses the increasing delinquency rates among student loan borrowers following the resumption of loan repayments after a pause initiated during the global health crisis. It highlights that as of early 2025, over 10% of student loan borrowers are delinquent on their payments, a significant rise from pre-pause levels. The piece attributes this surge to economic challenges, including inflation and stagnant wage growth, which have strained borrowers' finances. Additionally, the article notes that these delinquencies are negatively impacting borrowers' credit scores, making it harder for them to access other forms of credit. It also mentions political responses, with former President Trump criticizing the current administration's handling of the student loan crisis and proposing new relief measures if re-elected.

Read the Full Fortune Article at:
https://fortune.com/2025/05/05/student-loans-collections-delinquency-credit-scores-trump/