Debt returns to haunt millions as student loan defaults spike

Defaults on federal student loans surged after pandemic relief ended, with about 9.5 million borrowers in default by early 2026 and more than 4.2 million adding to defaults since 2025. The upheaval follows a rollout of changes to income-driven repayment and the dismantling of the SAVE plan, triggering wage garnishments, damaged credit, and sharply higher monthly payments for many. Borrowers—often from for-profit schools or with loans transferred among servicers—describe confusion and stress as they try to restart their lives, with some hoping PSLF or other forgiveness paths might help, even as the overall system remains chaotic and opaque.