The Journal.

For Millions of Student-Loan Borrowers It's Time to Pay

78 snips
May 28, 2025
Oyin Adedoyin, a personal finance reporter at WSJ, discusses the impending return of collections for millions of defaulted student-loan borrowers under the Trump administration. She highlights the significant threat of wage garnishments and tax refund confiscations now looming. The conversation delves into the struggles of borrowers resuming payments after the pandemic pause, the challenges faced by many in financial distress, and the potential economic impacts of these student loan repayments on overall consumer spending.
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INSIGHT

Student Loans Return To Collections

  • Federal student loans are now being sent to collections again, ending a period of leniency during the pandemic.
  • Borrowers face wage garnishment, tax refund withholding, and loss of federal benefits if they default.
ANECDOTE

Kristen Pickett's Student Debt Story

  • Kristen Pickett, a first-generation college graduate, took large loans expecting a better job that never came.
  • The pandemic pause allowed her to pay off debts and buy a house, a freedom she hadn't felt before.
ADVICE

Stay Alert on Loan Payments

  • Do not ignore student loan payments as missed payments now affect credit scores.
  • Check notifications from your loan servicer and keep addresses updated to avoid surprises.
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