MIL-OSI USA: Business Insider: Millions of student-loan borrowers are getting a ‘financial scarlet letter’ that could risk their home purchases and job prospects, Elizabeth Warren says

Millions of student-loan borrowers could be facing a financial strain that will hinder their abilities to buy a house or get a new job, Sen. Elizabeth Warren said.

Ahead of a Tuesday meeting with Linda McMahon, President Donald Trump’s education secretary, Warren published a blog post — first viewed by Business Insider — detailing her concerns with the Trump administration’s move to restart collections on defaulted borrowers’ student loans.

After Trump announced on May 5 that consequences for student-loan defaults would resume after a five-year pause — including garishment of wages and federal benefits — the New York Federal Reserve released a report that said 8.04% of borrowers moved into serious delinquency in the first quarter of 2025, putting them at greater risk of defaulting this summer.

…

Read the full story here

By:  Ayelet Sheffey
Source: Business Insider