Overview

• TransUnion estimates that nearly 2 million borrowers could face wage garnishment in July, marking an 800,000 increase since last month’s forecast.
• Borrowers in default may face automatic deductions of up to 15% of their paychecks.
• The Education Department has resumed collections on federal loans in default, including withholding tax refunds and federal benefits.
• Roughly 6 million borrowers entered delinquency between February and April, and the Federal Reserve warns that over 9 million could see significant credit-score drops this year.
• TransUnion projects an additional 1 million borrowers could default by August and 2 million more by September.