New Federal Student Aid data through June 30 revealed that 9.3 million student-loan borrowers are in default, an increase of 400,000 from the previous quarter. An additional 1.5 million borrowers are in late-stage delinquency and at risk of defaulting within the next six months. The total amount of federal student loan debt in default stands at $234 billion, representing about 14% of the overall portfolio. Borrowers who default may face consequences including damage to their credit score and the seizure of wages and federal benefits.
Don't miss out on breaking stories and in-depth articles.