Ashley Dreahn faces financial hardship as 9.5 million federal student loan borrowers enter default following the end of pandemic-era payment pauses.

Ashley Dreahn, a 40-year-old supervisor at a Texas prison, is among the millions of Americans struggling with a surge in student loan defaults. After a pandemic-era payment freeze ended, the number of borrowers in default reached a record 9.5 million, representing over 20% of all federal student loan borrowers. This surge includes many who struggled to re-engage with payments after the removal of the affordable SAVE plan. The Trump administration has moved to simplify the fragmented system by dismantling the SAVE plan, which many borrowers found to be the most affordable income-driven option. While the administration initially walked back plans to begin wage garnishments, a Moody’s Analytics report suggests these collections are likely to begin within the next year. For borrowers like Ashley Dreahn, who thought her loans were discharged in bankruptcy, the reality of default means ballooning balances and potential credit damage. The data shows that southern states, particularly Mississippi and Puerto Rico, have the highest concentrations of borrowers currently in default.

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