Life After College for Ashley Drain

Ashley Drain’s post-college journey has been far from what she envisioned.

Initially, she found a teaching job but subsequently decided to return to school, aiming for a higher-paying position in the chemical processing sector, which led her to take out additional loans. However, that plan fell through, and after facing job loss due to Hurricane Harvey and vehicle problems, she ultimately filed for bankruptcy in 2022.

While working at a Texas prison and saving for weight-loss surgery, Drain received alarming news from credit monitoring services this spring. Her student loans, which she believed had been forgiven through bankruptcy, had swelled to an astonishing $94,298 due to interest, and she had to start making payments again. She was now in a default status.

“I’m completely heartbroken,” said Drain, 40.

Across the country, the number of borrowers defaulting on student loans surged by over 4.2 million from April 2025 to March 2026, as per a report. This wave includes many who fell behind in 2024 when loan payments resumed following a break during the pandemic.

Currently, many borrowers are at risk of default due to being months behind on payments, particularly as the government discontinues SAVE plans, the most accessible income-based repayment option. This change is part of several initiatives by the Department of Education aimed at streamlining the complicated system.

Defaults mean a borrower has missed payments for nine months, leading to severe repercussions such as damage to credit ratings and debts being sent to collections.

Alan Collinge, founder of Student Loan Justice, commented, “I’m witnessing a mix of despair, anger, and disappointment like I’ve never seen before.”

The federal government possesses the authority to garnish wages and Social Security benefits from those in default, but a plan to initiate collections under the Trump administration was abandoned. A Moody’s Analytics report released this spring warned foreshadowing foreclosures within a year amid concerns about a fragile economy.

Getting a Student Loan Was Easy

Drain began her academic path at Texas Woman’s University in 2004—she was the first in her family to go to college. Juggling multiple jobs, including babysitting and working in various roles, she still found herself borrowing heavily.

“Someone once told me, ‘If you can’t come up with the money, I’ll pull you out of class,’” Drain recalled. “So, of course, I thought, ‘Okay, what do I sign?’”

She reflected on how nobody truly explained the implications of taking out loans.

“You put your trust in advisors and financial aid representatives, assuming they know best,” she said.

While teaching, she took on more student loans and earned an associate’s degree from a community college in Texas. She landed a job offer at a chemical refinery, but it was rescinded due to exceeding weight limits set for safety equipment.

In 2022, Drain sought bankruptcy relief, hoping all her debts would vanish. Upon checking her credit report, she saw messages indicating her loans were “100% paid off.” However, this misleading message can appear if loans are consolidated or transferred, even while debts linger.

It’s crucial to note that student loans are rarely wiped out through bankruptcy; borrowers must demonstrate an “undue hardship,” which can be a tricky process.

But Drain had no idea how complicated it was.

“I felt such relief thinking, ‘Okay, I can finally move on with my life,'” she said. “I thought I would save some money.”

After accepting a role as a prison supervisor last year—while staying in an RV park to cut costs—Drain was devastated by the default notice she received.

“Where’s the light at the end of the tunnel that I thought I saw?” she lamented.

The Wave of Defaults in the Pandemic’s Wake

The federal government had temporarily paused student loan payments during the pandemic, granting borrowers relief through 2023. Following that, President Biden’s administration allowed a one-year grace period. Yet, this measure will conclude in the fall of 2024, at which point loans will go into default after nine months of non-payment.

Defaults have spiked since then, with approximately 9.5 million borrowers—over 1 in 5—now in default, including those who were in arrears before the pandemic, according to an analysis. Previously, the record for defaulted borrowers was 8 million in December 2019.

Federal data indicates 870,000 borrowers are between 181 to 270 days overdue and at risk of defaulting.

In contrast, data shows that 33% of borrowers from for-profit colleges are at least 90 days late—a rate more than double that of public school borrowers.

The majority of private universities offering traditional degrees are nonprofit, while for-profit colleges typically focus on career-oriented degrees and often enroll students of color. Jason Altmeyer, president and CEO of a group representing vocational schools, stated they’re working diligently to educate students about the importance of repayment.

Challenges Understanding the Changes

Some borrowers have halted their payments, overwhelmed by their debts and the shifting landscape of the federal student loan system.

Barbara Howiek, a 63-year-old psychiatric nurse from Auburn, Maine, defaulted on her loans. She borrowed about $62,000 for her master’s degree from NYU in 2001, but after two decades of repayment, she still owes nearly $67,000—interest included. During her children’s upbringing, she deferred her loans, unaware that interest would accumulate during that time.

Howiek had anticipated loan forgiveness after 25 years on an income-based plan, only to receive a surprising letter stating she had 355 additional payments ahead of her. By then, she would be 91 years old before completing her repayments.

She noted that advice varied based on who she spoke with when seeking help. Last year, she halted her own payments to support her children’s college expenses.

“I’ve already repaid the money I borrowed. No way do I want to pay more,” Howiek stated, mentioning she isn’t too concerned about wage garnishing since she’s self-employed.

Shannon Kern, a 46-year-old mental health worker from Webster, Texas, is also grappling with her loans. Two months behind on payments, she’s reevaluating her options. After a period of no payments under SAVE, she was switched to a new income-based plan, resulting in a monthly payment of $847. But she was recently informed that this would actually spike to $1,683—an amount she would need to manage for nearly a decade.

She spent hours on the phone searching for clarity amid the chaos.

“It’s just mayhem and confusion,” Kern remarked.

Navigating the System Can Be Tricky

As a student, Drain faced uncertainty over her total debt. Unfortunately, the confusion persisted as she grew older. She transferred several loans to different servicers, and when she returned to school, her loans were put on hold.

“It feels like a massive disruption,” Drain said. “You just feel lost in the system until you realize, ‘Oh, I need this amount this month. Why?’”

Now in default, she aspires to eventually qualify for public service loan forgiveness, which mandates borrowers to repay loans over ten years while employed by a nonprofit or government entity.

“I’m trying to figure out how to make this work. What do I need to sacrifice?” she pondered. “How can I ensure I cover my bills without forgetting a payment?”

Reflecting on an almost-secured position at a chemical processing plant, she voiced her frustration: “My six-figure career shattered due to my weight. The money I’m scrambling to save for my surgery now has to go towards my student loans.”