A new wave of student-loan borrowers is in default while President Donald Trump's collections pause is ongoing, the New York Federal Reserve said. Anna Moneymaker/Getty Images The New York Federal Reserve said 3.6 million student-loan borrowers defaulted since the end of 2025. More borrowers who were kicked off the SAVE plan could default next year. It puts them at risk of wage garnishment and the seizure of federal benefits when the collections pause lifts. Millions of student-loan borrowers