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July 27, 2026

A wave of student loan borrowers have entered default since pandemic-era protections lapsed

  • While credit scores can suffer when borrowers are just a few months behind, entering default brings the possibility of more serious consequences.
    • By NICKY FORSTER and HEATHER HOLLINGSWORTH
    Associated Press

    iStock image
    Starting this month, new borrowers pick between one standard repayment plan and one income-driven option, as opposed to having several options.

    Defaults on student loans have surged across the United States, reaching record levels as borrowers struggle to keep up with payments.


     
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