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Student Loan Crisis Escalates | Irvine News
Description
Student loan defaults are exploding, with over 4.2 million more borrowers falling behind since last year—many hit hard when pandemic payment freezes ended in 2024. The government’s dismantling of the SAVE plan threatens even higher monthly payments, while missed payments for nine months trigger default, damaging credit and risking wage garnishment. Borrowers like Ashley Dreahn, who thought bankruptcy erased her debt, now face ballooning bills they can’t afford. Confusing loan transfers, shifting repayment rules, and conflicting advice leave people stranded, overwhelmed, and furious as the system crumbles under the weight of an economic crisis.
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