Millions of student loan borrowers at risk of default as late payments climb

For months, experts have warned that student loan borrowers who are behind on their payments may trigger a “default cliff.” Recent reports show that cliff is now looming.

The resumption of federal student loan delinquency reporting on consumers’ credit earlier this year caused a spike in the rate of severe delinquencies, which now near a record high, according to September’s Credit Insights report from credit score developer FICO.

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