The news surrounding the student loan landscape is constantly shifting, and new changes can be hard to understand. We have heard from borrowers across the country who share the same concern: what can I do now? We will outline actions and suggested next steps for borrowers in different situations to better understand their options and manage their student loans.

WASHINGTON, D.C. – The Department of Education announced today that it will initiate a transfer of the student loan portfolio to the U.S. Department of the Treasury through an interagency agreement. The Student Debt Crisis Center (SDCC) strongly opposes this reckless transfer, as it will create more confusion and harm to Americans with student loan debt. Due to the ongoing affordability crisis, many borrowers are increasingly worried about their ability to make payments, and

Amidst the looming student loan changes, new data reflects that Americans with student loan debt are falling behind on payments and entering default more than ever before. Nearly 25% of all student loan borrowers are behind on their payments, with over 5 million  already having entered default.

The Student Debt Crisis Center (SDCC) welcomes today’s announcement that the Department of Education will pause efforts to garnish wages and seize tax refunds for the estimated 5 million student loan borrowers who have defaulted on their federal student loans.

After more than 5 years, the Department of Education (ED) announced on December 23, 2025 its intent to resume administrative wage garnishment for Americans who have defaulted on their federal student loans.