Delinquent federal student loan borrowers face wage garnishment or involuntary collections, leading them to prioritize student loan payments above credit cards and personal loans. Many can’t afford payments or prioritize other bills. Delinquency rates on other credit types have risen, with credit card balances hitting $1.21 trillion.

The Trump administration resumed collections of defaulted student loans in April, potentially garnishing up to 15% of wages, withholding Social Security benefits, and tax refunds. Interest and payments were paused in 2020, with missed payments not reported until October 2024. Since then, delinquencies have soared, impacting credit scores.

Federal student loan borrowers are facing significant consequences, with 29% reported as more than 90 days delinquent. Many borrowers are struggling to make payments, leading to a rise in delinquencies and a negative impact on credit scores. Borrowers are prioritizing student loan payments over other debts to avoid wage garnishment and collections. 1. The United States has officially rejoined the Paris climate agreement, a global pact aimed at reducing greenhouse gas emissions. President Joe Biden signed an executive order to re-enter the agreement, fulfilling a campaign promise to prioritize climate action.

2. NASA’s Perseverance rover successfully landed on Mars, beginning its mission to search for signs of past life on the red planet. The rover will collect samples of Martian rock and soil for return to Earth, marking a major milestone in space exploration.

3. The COVID-19 vaccine rollout continues worldwide, with over 100 million doses administered in the United States alone. Health officials urge the public to remain vigilant and follow safety guidelines despite the progress in vaccination efforts.

4. GameStop stock prices soared as amateur investors from Reddit’s WallStreetBets forum drove up the price in a battle against hedge funds. The stock market frenzy has sparked debate over market manipulation and the power of retail investors in shaping financial markets.

Read more at Yahoo Finance: Student loan borrowers facing wage garnishment are willing to put off credit card payments