Student Loan Defaults Rise After Pandemic Protections End

Why it matters locally: The increase in student loan defaults nationally is likely to affect a portion of Nevada's population, given that many residents hold federal student loans. While the exact number of Nevada residents impacted is not specified, this national trend indicates potential financial strain for borrowers across the state.

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Federal student loan borrowers have entered default in significant numbers since pandemic-era protections ended. Approximately 9.5 million individuals, or one in five federal student loan borrowers, are now in default. This status applies to borrowers who have not made payments for more than nine months. This rise in defaults follows the conclusion of temporary measures that had suspended federal student loan payments and interest accrual for an extended period.