The recent TransUnion report indicates a substantial rise in student loan delinquencies, with approximately two million borrowers poised to default this summer. The analysis highlights that one-third of borrowers are over 90 days past due, significantly increasing from previous periods. The Education Department's resumption of debt collections after a three-year hiatus is anticipated to worsen the situation, prompting officials to encourage borrowers to communicate with loan servicers. Plans to reactivate automatic wage garnishment may further amplify financial strain on those unable to meet their obligations.
TransUnion's analysis reveals a concerning trend: nearly two million student loan borrowers are at risk of defaulting this summer due to rising delinquency rates.
The return of debt collections by the Education Department after more than three years is expected to put further pressure on borrowers struggling to make payments.
Collection
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