We Must End Harmful Default Collections Practices: Hear from Folks in Default and Take Action

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. In the coming months, this number is projected to soar to over 8 million borrowers in default. In 2025 alone, a borrower entered default every 9 seconds. These are not just unacceptable statistics; they are people with families and loved ones, and the impact of default is monumental, disruptive, and personal, affecting every aspect of their lives.

“This student loan has put me in so much debt it’s hard for me to pay bills or even keep up on any. It has failed my credit score and I am unable to get a tax return. It is always taken when I really need it.” 

- Breanna, Ohio, $12,000 

“I’m 83 years old. I only have social security. Cannot pay. My school closed and never refunded my money.” 

-Lois, Ohio, $100,000 

“I got my student loan for nursing school. I graduated over 20 years ago and still owe. Paid faithfully for over 10 years to then realize that I was paying interest that entire time. My loan should have been paid off after all that time. I couldn’t afford the monthly payment secondary to a change in my life. Starting a family and also chronic sick conditions didn’t allow me to make monthly payments. Several attempts made to decrease payments with no results. Unfortunately I stopped making payments because I had to decide whether to buy food for my family or make a student loan payment I couldn’t afford. I was able to defer the payments during Covid for about 1-2 years. I am now receiving payment statements and still can not afford it. The amount due with interest is rising every day. The stress it has put me and my family is unbearable. I need help and don’t know where to even start.” 

-Amarilis, Connecticut, $22,000 

“Took graduate loans to grow professionally. Almost to the end then the university lost additional assistance funds and had to leave with an incomplete grade. And a severe debt. Now I hear threats from the media that they are going to seize income from people. I just lost my job. Barely can make it to the end of the week. Might lose the roof and car, and have issues getting utilities and food to take care of my babies and parents. ” 

-Angela, Texas, $Unknown 

“I took out loans when I was a lot younger and able to work 2,3 jobs. I am 73 now and cannot work as hard and am unable to pay this big debt. I got stage 4 breast cancer, had to quit school, never received my degree. I am very nervous about it, it causes anxiety and fear.” 

-Suzan, Pennsylvania, $40,000

“I can not sleep sound and even do any social activities like before worrying about my student loans every minute. I think of the loans and right now it’s very difficult for my family and I to even meet up with our bills and some common stuff in the house and with this situation things will even get more difficult for me because right now I have to work two full time jobs to support my family and also pay some of our bills and wait for another check to complete the payment.” 

-Loidy, Maryland, $150,000

“Got my first associate degree at Indiana Business College. They changed name to Harrison College before graduation. I was told I'd be able to afford loan payments (I couldn't) with a degree in medical assisting. Harrison made me sign over a check made out to me but mailed to them for overpaid funds from fafsa. They said I couldn't graduate unless I paid this money due. They filled out my fafsa forms from the start. I thought that was just how it works. I had never been to college before. So I was unable to afford student loans, child care and car loan payments along with food, phone and insurance. My children and I still lived with my mom. Went back to school to obtain an associate degree in nursing. Currently I work as an RN. Student debt and interest snowballed when I was diagnosed with breast cancer and received treatments. I was barely working and barely able to afford to live let alone pay student loans. They didn't care and still requested payments since I was still receiving some income. Moved out from my mother's before getting cancer. I just can't afford to pay payments. They are ridiculously high.” 

-Rebecca, Indiana, $100,000 

“I graduated in 2015. I haven't been able to pay a lot towards my loans due to being in between jobs and unemployment. I haven't been able to find a job in over a year. I'm still without a job or income as I complete this survey. If I was employed, I would most likely be trying to get a place of my own and dependable transportation. These loans have dropped my credit score significantly along with credit card debt that I incurred. I don't know if I'll ever be able to pay this debt off.” 

-Jackquline, North Carolina, $80,000

These individuals’ stories give us an intimate glimpse into the hardships faced by millions of borrowers across the country. No one should ever be punished for pursuing higher education or for struggling financially. It is time for the Department of Education and the federal government to put an end to the student debt crisis and to the punitive measures against borrowers struggling or unable to afford their monthly payments. In order to safeguard the economic well-being of struggling Americans with student loan debt and their families, there needs to be a permanent end to default collections. 

Help us support millions of individuals and families like these by adding your name to our petition calling for a permanent end to collections on defaulted student loans.

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About the Student Debt Crisis Center

Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.