Student Loan Default Tsunami Hits Hard—Credit Scores Collapse Across America as Washington Resumes Collections

The Pause is Over—The Collections Have Begun The grace period is over. The federal student loan moratorium—a politically convenient patch job that delayed the inevitable—is dead. Now the collection machine has roared back to life, and it’s tearing through the financial lives of millions of Americans like a buzzsaw through rotted timber. Delinquencies are spiking. Credit scores are tanking. And the same government that sold an entire generation on the lie of “college as an investment” is now vacuuming up their tax refunds, garnishing their wages, and laying claim to their future. Fed Report Confirms a Debt Avalanche According to the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit, student loan delinquencies are surging…