Following the resumption of student loan collections after a five-year pause, delinquencies among student loan borrowers have skyrocketed, raising alarms about the overall increase in the US delinquency rate, which is now at its highest level since 2020. The New York Federal Reserve reports a significant uptick in defaults, leading to concerns that many borrowers could see their Social Security benefits reduced to $750 as debt collection efforts intensify. While credit card debt has decreased, the impact of overdue student loans continues to drag down overall credit scores for millions of Americans. With the restart of mandatory payments, many graduates are struggling to navigate their financial obligations, raising fears of wage garnishments for those in default. Experts advise borrowers to seek assistance to address their growing delinquencies and avoid severe consequences as the education debt crisis unfolds in a challenging economic environment.