As Feds Resume Student Loan Collections, States Try to Catch Borrowers Before They Sink | The Highland County Press

As feds resume student loan collections, states try to catch borrowers before they sink | The Highland County Press

Over the past few months, Celina Damian’s phone has been ringing off the hook with one bewildered, anxious question after another: “What kind of loan is this?” “Am I in default?” “Will the government really take my wages?”

Student Loan Default Crisis Affects Millions of Americans

Federal student loan debt has reached a critical point in the United States, with approximately 5.3 million borrowers currently in default. This represents a significant portion of the estimated 42 million Americans who hold federal student loans. The default numbers highlight a growing financial crisis affecting more than one in ten borrowers of federal student loans. These individuals face serious consequences, including damaged credit scores,…