Roughly 3 million student loan borrowers could move into default by August, leaving them at risk of having their paychecks garnished by the federal government.

After the pandemic-era pause on student loan payments ended, borrowers have had to reassess the state of their loans and budgets. According to TransUnion credit bureau, another 2 million borrowers are on course to default in September.

The Department of Education has sent notices to borrowers warning that tax refunds and wages could be withheld starting this summer if borrowers don’t take steps to restart payments. But wait times for student borrowers attempting to contact their loan servicers have been long, with many dropped calls, in part due to layoffs at the Education Department.

When do student loans go into default?

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