Sen. Elizabeth Warren has expressed serious concerns regarding the economic impact of restarting collections on defaulted student loans. Following a five-year pause, the Trump administration's resumption of aggressive collections has led to a significant increase in defaults, with nearly 2.2 million borrowers experiencing drops in their credit scores. Warren argues that these consequences will severely limit borrowers' capabilities to secure mortgages or gain employment, suggesting that such financial ramifications could follow them for years due to damaged credit histories.
"It can mean borrowers paying thousands more in interest rates on car loans, if they can get approved at all. It can mean being rejected for mortgages..."
"Millions of student-loan borrowers could be facing a financial strain that will hinder their abilities to buy a house or get a new job, Sen. Elizabeth Warren said."
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