Millions try to get their lives back on track, as defaults on student loans surge

Millions of borrowers are struggling with increased monthly payments and rising default rates as the government phases out the SAVE plan, once a key affordable repayment option. This change is putting a significant financial strain on students who now face less forgiving terms, likely leading to more defaults and economic hardships. The shift has major implications for the broader economy, as indebted individuals may struggle to spend, invest, or save, potentially slowing economic recovery efforts. This change underscores the urgent need for more sustainable loan forgiveness or repayment strategies to prevent a widespread financial crisis.