CHARLOTTE — Nearly 1 in 5 student loan borrowers are in default, meaning the account is at least 360 days delinquent, according to data from the U.S. Department of Education.
According to the department, around 400,000 more borrowers fell into default this year, bringing the total to 9.3 million borrowers.
Tuesday is the first deadline for federal student loan borrowers to switch repayment plans after the Biden-era Saving on a Valuable Education (SAVE) Plan ended in March.
Those who were enrolled can choose between two new plans — the loan consolidation and income-driven repayment (IDR) plans.
The change could mean higher monthly payments for many. Around 250,000 people living in North Carolina and more than 130,000 in South Carolina must switch.
Learn more about available repayment options here.