US Education Department Targets 5 Million Student Loan Defaulters

Student loan debt remains a significant financial challenge in the U.S. and beyond. In the U.S., the Biden administration has resumed aggressive collections on delinquent student loans, targeting over 5 million borrowers who have not made payments in the last year, contributing to a total student debt of $1.6 trillion held by about 42 million people. Many American parents are taking drastic steps such as pausing retirement contributions, liquidating investments, and working second jobs to finance their children's college education amid rising tuition, which has increased over 36% in recent years. California has expanded regulatory oversight of student debt relief services, requiring providers to register to protect consumers from deceptive practices. Internationally, Nigeria's NELFUND has disbursed nearly 60 billion naira in interest-free student loans with a repayment plan beginning two years after employment, but student enrollment in the loan scheme remains low despite the funding. These developments reflect a growing global focus on the complexities and burdens of student debt and efforts to manage its impact on individuals and economies.