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Why 9.5m Americans are defaulting on their student loans | DW News
Posted
August 3, 2026
Views
2,277
Likes
97
Comments
49
Engagement
6.41%
August 3, 2026
2,277
97
49
6.41%
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7:12Now PlayingMore than 9.5 million Americans are now in default on their federal student loans, the highest number on record. After a pandemic-era pause that allowed most federal borrowers to stop making payments for more than three years, millions are struggling to adjust to life with student loan bills once again. We look at why defaults have surged, what role the end of the payment pause and the SAVE repayment plan have played, and who is being affected most.
We also examine the real-life consequences of default: damaged credit scores, difficulties accessing loans or housing, and the possibility of wage garnishment and other government collection measures. Experts say this is not necessarily a warning sign for the wider US economy, but it is creating serious financial difficulties for millions of households.
#usa #students #studentloans #economy #dwcurrentaffairs
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