A new WalletHub report reveals that student loan delinquency rates are surging in several states, with Maine experiencing the most significant increase. The report highlights the potential consequences of delinquency, including damaged credit scores and wage garnishment, amidst ongoing legal challenges to President Biden's student loan forgiveness plans.
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.
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 adds.
Student Loans Delinquency Maine Louisiana Michigan Credit Score Forgiveness
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