Summary:
Senator Elizabeth Warren has raised concerns over the Trump administration’s move to restart collections on defaulted student loans, which could affect millions of borrowers and potentially hinder their ability to secure jobs and homes. The New York Federal Reserve reported that 8.04% of borrowers moved into serious delinquency in Q1 2025, putting them at greater risk of defaulting this summer. Additionally, 2.2 million borrowers saw their credit scores drop over 100 points after negative credit reporting resumed in October 2024.
