How Student Loan Default Rates Could Impact Midterm Voters
Summary
Federal student loan defaults and delinquencies have risen as borrowers adjust to restored payments and changing repayment plans. The Trump administration is preparing to increase collections, potentially including wage garnishment and tax-refund interception, while a survey suggests student loan experiences may influence some voters in the November 3 midterm elections.Key Facts
- Federal Student Aid reported that 9.3 million borrowers were in default and 1.5 million were in late-stage delinquency as of June 30.
- About $234 billion, or roughly 14 percent of the $1.7 trillion in U.S. student debt, was in default.
- An Urban Institute study put the share of borrowers at least 60 days behind on federal or private student loans at 15.8 percent in August.
- Student loan delinquency rates in Texas and Ohio exceeded the national average, as did rates in nine House battleground districts identified by the Cook Political Report.
- The Student Debt Crisis Center survey found that 88 percent of respondents said their student loan experience would affect their midterm vote; 71 percent said it would have a significant influence.
- Federal student loans generally enter default after 270 days without payments.
- The Center for American Progress estimated that borrowers moving from the SAVE plan to the Repayment Assistance Plan could pay an average of $2,163 more per year.
- The article says the Trump administration is working with the Treasury Department to step up collections, with wage garnishment and federal tax-refund interception among possible measures.
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