Episode Details

Record-high student loan defaults are crushing millions, with 9.5 million borrowers now more than nine months behind — a crisis fueled by the end of pandemic-era payment pauses and a drastic reduction in repayment options. The Education Department’s recent move to scrap the SAVE plan, the most generous income-driven repayment option, has left millions facing higher payments and worsening financial strain. With $233 billion in defaulted loans and one in five federal borrowers affected, the burden is especially heavy on working-class Americans and those who attended for-profit colleges — where default rates are more than double those of public school grads. States in the South and Puerto Rico are hit hardest, and the consequences — including wage garnishment — are severe. This isn’t just a pandemic hangover — it’s a systemic crisis with deep financial and social implications.

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