After a five-year pause, the Trump administration is bringing back financial penalties for the many millions of borrowers who are too far behind on their student loan payments. It’s led to confusion and financial uncertainty.
At least 5 million people are in default, meaning they have failed to make payments on their loans for at least nine months — and millions more are projected to join them in the coming months.
All told, about 43 million federal student loan borrowers owe a total of $1.6 trillion in debt. Starting May 5, those in default face having tax refunds withheld and…
