Millions of US student loan borrowers are facing collections for the first time since 2020, potentially impacting consumer spending as the economy slows. Nearly 25% of borrowers were behind on payments by March, with the Trump administration resuming involuntary collections, including wage garnishments and tax refund confiscation. Economists warn this could exacerbate financial stress, as personal consumption—accounting for 70% of GDP—may decline amid rising unemployment fears and inflation, with many borrowers already struggling under increased delinquency rates.
