Approximately one in six adult Americans has federal student loan debt, with millennials holding a significant portion of that debt. In May, the resumption of collections on previously defaulted student loans, which had been paused since 2020, occurred alongside the reintroduction of late payment reporting to credit bureaus. This change has led to a decrease in credit scores for millions, causing a record number of borrowers to be at risk of defaulting. The issue has prompted political contention, with opposing views on student loan forgiveness.
According to congress.gov, nearly "one in six adult Americans" has federal student loan debt, and millennials hold the bulk of that debt.
In May, President Trump resumed collections on previously defaulted student loans, leading to a drop in credit scores for millions of borrowers.
Many conservatives argue against student loan forgiveness, while younger people contend that loans are predatory and unaffordable.
A record number of borrowers are at risk of defaulting by the end of the year due to resumed collections and reporting of late payments.
Collection
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