Love Your Money: Student loan debt collection resumes, millions at risk of default

During the pandemic, many borrowers stopped making payments under protections provided by the CARES Act. However, those protections have now expired. Pentis warned of the severe impact on credit scores and financial stability for those who fall behind.

"It can really severely impact your credit report and your credit score," he said. "So, that's probably the biggest consequence of being so late on your federal student loan is it just sort of torpedoes your personal finances."