Federal student loan defaults have reached a record high. Nine million borrowers have defaulted, which is up from 5.3 million in June of last year. NewsNation's Nick Smith reports.
On July 1, the Biden-era Saving on a Valuable Education plan (better known as the SAVE plan) will end; limits will be imposed on how much graduate students and parents (through the Parent PLUS loans) can borrow in federal student loans, and a graduate borrowing program will end. #Studentloans #Saveplan #Collegeloandebt
The Department of Education said 7.5 million borrowers are still enrolled in the program, but they must all enroll in an alternative repayment plan by Sept. 29.
Recently released data from the Education Department showed that by the end of last year, 7.7 million borrowers had defaulted on $181 billion in federal student loans.
Without this Education Department oversight, borrowers could "be placed in the wrong loan repayment status, billed for incorrect amounts" and more, the U.S. Government Accountability Office says.