💨 Abstract

Millions of Americans are experiencing drops in their credit scores as the U.S. government resumes collecting on missed student loan payments. With the end of the grace period in October 2024, borrowers are now at risk of wage garnishment and seized tax refunds if they continue to default. Finally, nearly 1 in 4 federal student loan borrowers were significantly behind on payments by March 2025.

Courtesy: WTOP Staff