“The level of concern here really depends on the reasons a borrower has not paid their federal student loans. If they don’t have the capacity, they may be overstretched,” said Michele Raneri, vice president and head of research at TransUnion, CBS reports. “They may not know they have to pay them, may not be able to find the information on how to do so, or may not have a willingness to pay for one reason or another.”
One in five borrowers is “seriously delinquent” or has a past-due payment of 90 days or more, according to a new analysis by TransUnion, one of the three major credit bureaus. The analysis looks at the percentage of student loan borrowers at risk of default and how that affects their credit scores.
FSA will restart the Treasury Offset Program, administered by the U.S. Department of Treasury, on Monday, May 5, 2025. All borrowers in default will receive email communications from FSA over the next 2 weeks making them aware of these developments and urging them to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. Later this summer, FSA will send required notices beginning administrative wage garnishment.
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