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Scripps Local

Federal student loan delinquencies face stricter enforcement

Scripps Local · Just In
Scripps Local
Scripps Local
Just In

Starting this month, those who are delinquent on their federal student loans will encounter more stringent repercussions, including potential wage garnishment and interruptions to federal benefits.

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
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