schools
Many student loan borrowers have entered default post-pandemic protections
Summary by The Waco Editorial Desk · Based on reporting by AP via Scripps News Group , KXXV (ABC 25) News
· July 20, 2026
· 4 min read
Defaults on student loans have surged across the United States, reaching record levels as borrowers struggle to keep up with payments. The numbers have spiked since payments came due again following a lengthy pause intended to provide relief during the COVID-19 pandemic. Today, around 9.5 million...
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Summary created by The Waco Editorial Desk — automated, rule-governed Original reporting AP via Scripps News Group, KXXV (ABC 25) News Original story Read at the source Source published Jul 20, 2026 Indexed here Jul 21, 2026 AI assistance Automated summary drawn from the source’s own published text Prepublication human review No — editorial rules, flagged-item review, and published samples
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Key takeaway The numbers have spiked since payments came due again following a lengthy pause intended to provide relief during the COVID-19 pandemic.
Why this matters in The Waco
In Waco, the surge in student loan defaults will likely have a disproportionate impact on local families and the economy. With many residents relying on education and healthcare jobs, the strain of student loan payments can be particularly challenging. The default rate of 1 in 5 federal student loan borrowers translates to thousands of individuals in McLennan County who may be facing wage garnishment, damaged credit scores, and other financial consequences. As the cost of living in Waco continues to rise, borrowers who were previously managing their payments may find themselves falling behind. The elimination of the SAVE income-driven repayment plan will only exacerbate the problem, leaving many to wonder how they will make ends meet. Local lawmakers and advocacy groups must take notice of this growing crisis and work to provide support and resources to borrowers struggling to stay afloat.
About this story
Original reporting by KXXV (ABC 25) News . The Waco surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KXXV (ABC 25) News . Have a tip or correction? Contact our newsroom .
Category: schools ·
Published: July 20, 2026 ·
Source: KXXV (ABC 25) News ·
Reading time: 4 min
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Frequently asked about this story
What is this story about? Defaults on student loans have surged across the United States, reaching record levels as borrowers struggle to keep up with payments. The numbers have spiked since payments came due again following a lengthy pause intended to provide relief during the COVID-19 pandemic. Today, around 9.5 million...
When was this published? This article was first published on July 20, 2026 by KXXV (ABC 25) News and curated for The Waco readers.
Who reported this story? This story was reported by AP via Scripps News Group at KXXV (ABC 25) News. To learn more about how The Waco selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more schools coverage from The Waco, or browse our daily briefing and topic hubs .
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