Challenges in the Federal Student Loan System
The federal student loan system is facing uncertainty with millions of borrowers waiting for legal decisions on repayment plans and millions more at risk of default. The system has been disrupted by the COVID-19 pandemic and changes in administration, making it harder for borrowers to navigate. Complex legal battles and administrative changes are complicating the situation further.
Key Points
- Millions of federal student loan borrowers are awaiting legal decisions on repayment plans
- Risk of default is high for many borrowers, with consequences like damaged credit and wage garnishment
- The system has been disrupted by the COVID-19 pandemic and changes in administration
- Complex legal battles and administrative changes are making it harder for borrowers to navigate the system