On this edition of Your Call, we discuss the Trump administration’s overhaul of the federal student loan system, which will leave the roughly 43 million Americans with student loan debt facing higher monthly payments, fewer repayment options, and new borrowing limits.
This comes as defaults on student loans are reaching record levels across the US as borrowers struggle to keep up with payments, following the end of pandemic-era freezes on repayments. According to the Washington Post, since June 2025, "the number of defaulted borrowers has exploded from 5.3 million to around 9.5 million, according to data from the Office of Federal Student Aid. Out of $1.7 trillion in federally backed student loans nationwide, $233.3 billion is in default."=
Guest:
Natalia Abrams, president and co-founder of StudentDebtCrisis, a non-profit dedicated to student loan debt reform
Resources:
The Washington Post: A wave of student loan borrowers have entered default since pandemic-era protections lapsed
AP: As defaults on student loans surge, millions are trying to get their lives back on track
Business Insider: ‘A bunch of red tape’: Student-loan borrowers can’t get clear answers from the companies that manage their debt
ABC: Major student loan changes take effect July 1: What to know
The Washington Post: Student loan pause may have had a surprising impact, Post analysis shows
