Nearly one in three federal student loan borrowers are at risk of defaulting on payments as early as July, as delinquency and default rates soar in the wake of pandemic-era repayment relief ending. About 5.8 million federal student loan borrowers were 90 days or more past due on their payments as of April 2025, representing the highest delinquency rate ever recorded. "With over 200 million credit-active consumers in the US, the 5.8 million affected borrowers make up only a small percentage," reported TransUnion. Borrowers fall into default once they are 270 days past due. Nearly two million borrowers could reach default status in July, making them subject to wage garnishment and other collection actions by the US Department of Education. Another one million are expected to default in August, followed by two million more in September. This sharp rise in delinquency comes less than two months after the education department resumed collections on defaulted federal loans.

Underqualified Secretary of Education Linda McMahon bleated: "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies." This draconian move is part of the Trumpf junta's plan to transfer wealth away from the American middle class. This will also be an opportunity for private contractors connected with the junta to repossess people's properties and assets. Student loans are not a problem for the oligarchy and their offspring in America, like NYU student and scion Barron Trumpf who reportedly earned $40m in cryptocurrency trading this year. The dauphin will have more opportunities to enrich himself in the Trumpf Crime Family (TCF) after graduation, unlike the vast majority of his classmates who will juggle bills and pay off student loans to make ends meet. Links: drudge.com Crypto Barron