Defaulted borrowers surge after U.S. student loan pause ends

3 min read

An Associated Press analysis found more than 4.2 million additional borrowers entered student loan default between April 2025 and March 2026 after pandemic-era payment pause ended and many went off track in 2024. The story highlights individual cases, including a borrower whose loans thought discharged in bankruptcy ballooned to $94,298, and notes that the Education Department has dismantled the SAVE plan, which may raise monthly payments. Borrowers enter default after nine missed months, which can damage credit and allow the federal government to send debts to collections or garnish wages and Social Security.

More than 4.2 million borrowers entered student loan default