federal Parent PLUS program<\/a> allowed parents to borrow the full cost of attendance for their child’s education. Parent PLUS borrowers were not eligible for the SAVE plan, meaning they did not receive the same SAVE-related forbearance that began in July 2024 and may have been part of the new default wave.<\/p>\nThe researchers said that, based on income data from tax records and the American Community Survey, the South tends to have lower income levels and higher delinquency rates.<\/p>\n
The researchers also found that at least 10% of newly-defaulted student-loan borrowers were in Louisiana, Mississippi, Alabama, Georgia, and South Carolina. They said <\/strong>lower income levels and higher delinquency rates in the region could explain this concentration.<\/p>\nThe consequences of default can be severe, the researchers said. In addition to wage garnishment and benefit seizures, borrowers would be cut off from accessing traditional credit while the default remains on their credit reports, which typically last 7 years. That could hinder their ability to take out a mortgage or auto loan.<\/p>\n<\/p><\/div>\n