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President Donald Trump’s efforts to dismantle the Education Department, and limit access to student loan forgiveness, is sparking increased financial stress among student borrowers. Now an estimated 9.7 million student-loan borrowers, who owe more than $250 billion, face a hit to their credit scores as pandemic-era measures to limit the consequences of non-payment fade away, according to Federal Reserve Bank of New York’s Research and Statistics Group.
“It is reasonable to expect student loan delinquency to surpass pre-pandemic levels when new delinquencies hit credit reports…,” the New York Fed said in a blog post last week. “Borrowers enrolled in the SAVE Plan are in forbearance due to federal litigation of the SAVE Plan.”
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