BUSINESSJul 20 · 04:10 UTCWPLG LOCAL 10 MIAMIBy HEATHER HOLLINGSWORTH and NICKY FORSTER, Associated Press

As defaults on student loans surge, millions are trying to get their lives back on track

Student loan defaults surged by 4.2 million from April 2025 to March 2026, with borrowers facing financial crises after pandemic-era payment pauses ended. Ashley Dreahn, a borrower who filed bankruptcy, saw her discharged loans reinstate with interest, reflecting broader struggles as the Education Department phases out affordable repayment plans and potential wage garnishments loom.

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Mentioned

Ashley DreahnpersonAssociated PressorganizationStudent Loan JusticeorganizationAlan CollingepersonMoody’s AnalyticsorganizationTrump administrationorganizationEducation DepartmentorganizationTexas Woman’s Universityplace

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