Federal student loan delinquencies face stricter enforcement

Breakdown

• The Department of Education will resume interest accrual on student loans and enforce stricter penalties for delinquencies.
• Several repayment plans are being phased out by July 2028, and pending litigation may accelerate repayment requirements. 19s
• Borrowers more than 270 days delinquent may face wage garnishment of up to 15% of take-home pay. 1m 51s
• A recent study shows 31% of borrowers are over 90 days past due, with 1.8 million at risk of default. 1m 59s
• Financial advisors urge borrowers to contact loan servicers, consider income-driven repayment, and monitor credit to avoid further consequences. 2m 28s