A new report from WalletHub reveals that Maine, Louisiana and Michigan are experiencing some of the biggest increases in student loan delinquency. The report comes amid ongoing legal challenges to Biden's student loan forgiveness plan.
With student loan payments having resumed over the past year following a pause during the pandemic, many people have struggled to keep up.A new report from WalletHub, published on Thursday, analyzed where student loan delinquency, or letting the loans become past due, is increasing the most by state.It found that Maine , Louisiana and Michigan have experienced some of the biggest increases in student loan delinquency between the first and second quarters of 2024.
Being delinquent on student loans can lead to damaged credit scores – and even the garnishment of wages.The report comes amid legal back and forth over the Biden administration’s various plans for student loan forgiveness, which has faced challenges from Republican-led states and previously been blocked by the Supreme Court. Here's what to know about student loan delinquency and where it's increasing the most: The first day after missing a student loan payment, the loan becomes past due – or delinquent. The loan remains delinquent until the borrower repays the past due amount, or makes other arrangements like deferment, forbearance, or changing repayment plans.Loan servicers will report the delinquency to the three major national credit bureaus for those who are delinquent on their student loan payment for 90 days or more. Anyone who continues to be delinquent on their loan can risk going into default – which can have serious consequences. This includes the entire unpaid balance becoming immediately due, damaged credit rating and ability to buy a car or house becoming impacted, and even tax refunds and federal benefit payments possibly being withheld and applied toward repayment of the defaulted loan. Wages can even be withheld and sent to the loan holder, the Education Department explains. The point when a loan is considered to be 'in default' varies based on the type of loan it is, the department add
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