Student Loan Defaults Rise After Pandemic Protections End

Why it matters locally: The increase in student loan defaults is likely to affect a substantial number of Virginia residents, given the state's population and the national scope of federal student loan borrowing.

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.