Key facts
- Student-loan payments are adding to the financial strain on borrowers, alongside rising costs of groceries and housing.
- Federal student-loan defaults are at a record high, with involuntary collections paused for over a year.
- Roughly 14% of the US's $1.7 trillion student-debt load, or $234 billion, is in default.
- Republican lawmakers support President Donald Trump's student-loan changes, which they claim will aid repayment.
- Borrowers are concerned about losing paychecks, Social Security payments, and tax refunds due to default consequences.
- Millions of borrowers are transitioning off the SAVE plan, facing potentially higher monthly bills.
Student-loan borrowers are facing significant financial pressure as monthly payments resume and potential defaults loom, a critical issue ahead of the midterm elections. Many, like Sarah Bundy, who has struggled with debt for decades, fear they cannot afford the anticipated higher monthly bills under new repayment plans. This concern is amplified by rising costs for everyday necessities like groceries and housing, with inflation outpacing pay raises. Elevated delinquency rates in competitive states such as Texas and Ohio underscore the political sensitivity of the student-loan crisis.