Defaults on student loans have surged across the United States, reaching record levels as borrowers struggle to keep up with payments. The numbers have spiked since payments came due again following a lengthy pause intended to provide relief during the COVID-19 pandemic. Today, around 9.5 million people — 1 in 5 federal student loan borrowers — are in default, meaning they are more than nine months behind on their payments.

Consequences of Default

While credit scores can suffer when borrowers are just a few months behind, entering default brings the possibility of more serious consequences, including garnished wages or Social Security payments. For now, the Trump administration has held off on such involuntary collections.

Despair is on the rise, advocates say. “Folks are struggling to make ends meet and cover all the rising costs of everything else. The growing student loan bills are making things worse and folks are falling behind,” said Aissa Canchola Bañez, policy director for the advocacy group Protect Borrowers.

States with High Default Rates

Many of the states with the highest concentrations of defaulted borrowers are in the South, an AP analysis found. Mississippi has the nation’s highest default rate at 28.3%, and others near the top include Louisiana, Alabama, West Virginia, Oklahoma, Georgia, South Carolina, and Texas.

Students who attended for-profit colleges struggle more than others to pay back their loans. Thirty-three percent of those borrowers were 90 days or more behind on their student loan payments, a rate more than double that of borrowers who attended public schools, according to data by the Office of Federal Student Aid released this year to help schools understand and identify default risks.

Original reporting: NBC10 Boston — read the source article.