{
  "id": 9532276,
  "title": "More than 10 million student-loan borrowers are behind on payments — with their wages and Social Security on the line",
  "url": "https://urgent.news/2026/09/24/more-than-10-million-student-loan-borrowers-are-behind-on-payments",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T09:35:01.000Z",
  "source": {
    "name": "Business Insider",
    "slug": "business-insider",
    "url": "https://www.businessinsider.com/student-loan-borrowers-default-delinquency-wages-social-security-garnishment-repayment-2026-9"
  },
  "original_language": "en",
  "account": "More than 10 million student-loan borrowers across the United States are currently behind on payments, with their wages and Social Security benefits potentially at risk, according to recent Federal Student Aid data.\n\nAs of June 30, 9.3 million borrowers were in default, a 400,000 increase from the previous quarter. This represents 14% of the entire federal student loan portfolio, totaling $234 billion in default. An additional 1.5 million borrowers are in the late stages of delinquency and at risk of defaulting within the next six months.\n\nWhen a borrower defaults, they may face negative consequences such as a damaged credit score, wage garnishment, seizure of tax refunds, or a reduction in their Social Security payments. Due to recent changes implemented by the Department of Education, these wage garnishments and the seizure of federal benefits have been paused temporarily while the department enacts President Donald Trump's repayment plan adjustments.\n\nThe Biden administration's SAVE plan, which provided borrowers with more affordable monthly payments, was eliminated on July 1, leading to a surge in projected loan payments for many borrowers. This has caused concern among borrowers, who fear the potential repercussions of defaulting on their loans.\n\nDemocratic lawmakers have introduced legislation to protect seniors and borrowers with disabilities from having their Social Security garnished during a default. Sens. Bernie Sanders, Elizabeth Warren, and Ed Markey introduced a bill to prevent the seizure of Social Security payments in such cases.\n\nThe federal student loan default portfolio is also undergoing a transition, with the Education Department transferring management of defaulted student loans to the Treasury Department. The Treasury is currently seeking vendors to facilitate loan collections.",
  "summary": "New data from Federal Student Aid found that 9.3 million student-loan borrowers are in default, and 1.5 million more are in serious delinquency.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}