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What to know if you’re one of 170,000 people in Illinois behind on student loans

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What to know if you’re one of 170,000 people in Illinois behind on student loans


More than 170,000 Illinois residents are behind on student loan payments and at risk of having their wages garnished now that the Trump administration has restarted collections on federal loans in default.

The federal government considers loans to be in default when a borrower hasn’t made payments for about nine months. Wage garnishment involves seizing a portion of someone’s paycheck to help cover the cost of their debt.

The action could be disastrous for borrowers who are already having a hard time making ends meet, said Sabrina Calazans, executive director of the Student Debt Crisis Center, a nonprofit focused on helping borrowers.

“This is a really, really bad time for so many folks [who] are struggling,” Calazans said, noting that these collections are intersecting with skyrocketing health care premiums, high unemployment and the increasing cost of groceries and other necessities.

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“It just becomes this huge nightmare for so many families,” Calazans said.

The two groups most likely to be impacted are Black borrowers and borrowers with associate degrees, according to a fall 2025 survey by The Institute for College Access and Success.

WBEZ spoke with Calazans and another student debt expert to break down what default and wage garnishment means for borrowers and what actions people with federal student loans can take to prevent that situation — or get out of it.

Why is the federal government withholding wages from some student loan borrowers?

For almost six years, since the start of the COVID-19 pandemic, federal officials had opted not to collect on defaulted student loans. But last spring President Donald Trump’s administration announced it would resume wage garnishment in order to recoup taxpayer dollars.

That means that starting again this year, with 30 days notice, the government can work with your employer to seize up to 15% of your disposable income. Critics say the move will only worsen the financial hardships of struggling Americans without decreasing the number of people already in or headed for student loan default.

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“It seems like the appropriate thing to do would be to talk to the borrower about, ‘How can I get you in a form of repayment that you can afford,’” said Alexander Lundrigan with Young Invincibles, a nonprofit that advocates for policies benefiting young Americans. “But instead of the hand, it’s the hammer. And that’s just been the approach of this administration.”

More than 5 million borrowers across the country were in default as of April 2025, and another 4 million were more than 90 days behind on payments, according to the U.S. Department of Education. That means more than a quarter of federal student loans could be put into involuntary collections this year.

What happens once I default on my student loan?

The borrower’s entire balance is due and fees get tacked on, Calazans said, which can cause the debt to balloon even more.

“It’s very overwhelming for folks,” she said.

If you go into default you should see a red warning at the top of your StudentAid.Gov dashboard. You may also receive a letter in the mail from the Education Department’s default resolution group, or the company that administers your loan may reach out by phone or email.

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Once you reach 360 days of missed payments, your defaulted loans can be sent to collections and you may face wage garnishment or seizure of your federal tax refund.

Already, federal officials say they are notifying 1,000 borrowers in default this month that their wages will be garnished, and that number will ramp up in the coming months.

How do I know if I’m at risk of default?

Before default, there’s delinquency. Miss your payment deadline by just one day and your loans become delinquent, Calazans said.

Once you miss at least 90 days of payments, your delinquent status is reported to major credit bureaus. Taking out a credit card or renting an apartment or buying a home become much more difficult.

“People see their credit scores tank,” Calazans said. “It impacts all aspects of life.”

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One way to prevent this is to make sure your contact information is up-to-date in both your loan servicer and Federal Student Aid accounts. That way you don’t miss important communications about payment deadlines and changes to your loan status, including notices about delinquency and default.

This is especially important right now as the federal student loan system undergoes changes and is plagued by a backlog of applications for affordable repayment plans and student loan cancellation, Calazans said.

“The communication to folks has been horrendous,” said Calazans, citing layoffs at the Education Department. “It’s really hard for people to navigate the system.”

A department spokesperson did not respond to a request for comment.

What factors could put me at a higher risk of default?

Many Americans are being pushed into default by the increasing cost of housing, food and health care, Calazans and Lundrigan say, and by the Trump administration’s whittling down of student loan repayment options like the SAVE plan, which was the most affordable plan offered.

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More than 4 in 10 borrowers surveyed by The Institute For College Access and Success reported having to choose between making loan payments and covering the cost of food, housing and other basic needs.

“There’s an assumption that [people in default] are refusing to pay their student loans, which is not the case most of the time,” Lundrigan said. He said borrowers tell him: “I’m picking between my student loan payment and my rent, and I’m going to pay my rent.”

What should I do if I’m at risk of defaulting on my student loans?

If your loans are delinquent but not yet in default, Calazans advises calling MOHELA, Nelnet, or whichever company administers your loans. (Find that information here). You can request the servicer retroactively apply a forbearance or deferment to the period of time you have missed payments.

“It clears the fact that you were in delinquency, and brings you back to good standing and back to square one,” Calazans said.

You can also use the student loan simulator on the Federal Student Aid website to figure out if there’s a more affordable repayment option available based on your individual financial circumstances, Lundrigan said.

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What options do I have if my student loans are already in default?

Unless you are in a position to pay off your entire loan balance and default fees, Calazans said, you should contact your loan servicer and/or the Education Department’s default resolution group as soon as possible — ideally before your loans are moved into collection.

“It’s harder to get that wheel to stop when it’s in motion,” she said.

Your two options are loan rehabilitation or consolidation.

Under the first, the default resolution group comes up with a payment amount that you must make nine times over a 10-month period to bring your loans out of default.

“It’s a lengthy process,” Calazans said. Consolidation “is a much quicker way for you to get out of default.”

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By consolidating your loans, you are basically creating a new loan and putting yourself back into good standing, Calazans explained. You can then enroll in an income-driven repayment plan to get back on track.

If you pursue this route, Lundrigan said, you should try to apply and have your loans consolidated before July 1, otherwise you will lose the option to request deferment for unemployment or economic hardship.

What can I do if I receive a notice of wage garnishment?

You can appeal the decision through the federal default resolution group, Lundrigan said, but you have to do so quickly.

If granted a hearing, you will need to present evidence that you’ve recently started a new job, that the debt amount doesn’t exist or is incorrect or that wage garnishment would create extreme financial hardship. Lundrigan said this process may soon change.

Calazans still recommends reaching out to the federal default resolution group to ask about next steps. But she said some people have had trouble getting in touch with the agency.

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If that’s the case, she said, Illinois residents should reach out to their student loan ombudsman or contact their representatives in Congress.

“The default resolution group is supposed to help you. This is literally their job,” Calazans said. But if that doesn’t happen, “the lawmaker’s office can intervene and be like, ‘Hey, what’s going on?’”



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Illinois Democrats face backlash after blaming Trump in Chicago cross-burning case | Fox News Video

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Illinois Democrats face backlash after blaming Trump in Chicago cross-burning case | Fox News Video


Illinois Democratic leaders Governor JB Pritzker and Chicago Mayor Brandon Johnson are slammed for weaponizing a Chicago cross burning incident by blaming former President Trump. Despite the suspect, Murlin Lue, admitting his motive was to protest Trump, not racism, Pritzker and Johnson doubled down. Critics, including Illinois GOP State Rep. Chris Miller, accuse them of playing politics and fostering division rather than seeking truth.



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Illinois Lt. Gov. candidates focus on affordability in pitch to Rockford voters

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Illinois Lt. Gov. candidates focus on affordability in pitch to Rockford voters


ROCKFORD, Ill. (WIFR) – November ballots will feature a repeat of top billing in the race for governor. Illinoisans can once again choose between Governor JB Pritzker or Darren Bailey to lead the Land of Lincoln.

But beside their spots, new names will appear for voters.

The Democratic and Republican candidates for governor picked new running mates for their rematch. With Lieutenant Governor Julianna Stratton running for U.S. Senate, Pritzker picked Christian Mitchell to join his ticket. On the Republican side, Aaron Del Mar joins Bailey, who previously ran with Stephanie Trussell in 2022.

Mitchell and Del Mar spoke Thursday with WIFR on what inspires them to run, their campaign priorities and ideas to improve the Rockford region.

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Backgrounds

Starting with the Democratic ticket, Mitchell joins the race as a former state representative from Chicago as well as a deputy governor with the Pritzker administration.

“Before anything else, I’m Debbie’s son, and I’m James’s grandson,” Mitchell introduced. “They’re the ones who really instilled in me the value of hard work and made sure that I was going to have a very bright future.”

Mitchell sees the role of lieutenant governor as a partner to the state’s executive.

“I’m really lucky to be running with somebody who I respect, and who I think is the best governor in the nation… Governor JB Pritzker,” he said.. “My first thing is going to be supporting his agenda, which right now is all about lowering costs and raising wages.”

On the Republican side, Del Mar hails from suburban Chicago and considers his first priority to be raising his family.

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“I wanted nothing to do with politics, did not want to be involved — wanted just to raise my kids and work my job,“ said Del Mar. He described his start in public service as something he ”kind of got pulled into.”

The Republican worked his way from a city council member in Palatine, at 29-years-old, to co-chair of the Illinois GOP. Although he says he “wanted nothing to do with being on” Bailey’s campaign, Del Mar sees strength in unity — offering a Chicago area perspective alongside Bailey’s southern Illinois roots.

“How about everybody in the state of Illinois, regardless of where you come from, has a seat at the table. If you’re from a southeast farming community, or you’re from the city of Chicago, where I grew up, everybody has a stake in the game.”

Priorities

Mitchell points to economic development as his focus for the gubernatorial campaign.

“I see vacancies on State Street in Chicago. I see vacancies on Main Street in Belleville and Alton and in Carbondale,” he recounted. “I want to make sure that we’ve got the kind of amenities and economic development, that kind of affordability, that allow us to make sure that folks want to stay in the towns that they’re born in if they want to.”

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The Democratic candidate also eyes long-term planning for the state, including an “Illinois 2050 Plan.”

“How do we have the kind of educational undergirding that means that no matter where you’re from, you have a chance to have one of those jobs, whether it’s in new agriculture technology and new farming techniques or biotech, quantum.”

When asked how to achieve these priorities, Mitchell turned to investing in public education, retaining residents with better wages and improving health care.

“Making sure that we are able to protect our health care system, so that folks aren’t going broke when they get sick, that’s another big way that we can make an impact.”

Del Mar outlined a cost-of-living focus as central to his campaign.

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“You wanna succeed, you do the basics really well, and the basics are affordability,” he contended.

The Republican repeatedly highlighted the state’s property taxes — reportedly the highest in the nation — as an issue to tackle. He suggested redirecting Illinois’s budget as one measure to ease the burden on homeowners.

“Number one is fully funding the state’s portion of local taxes, because that will offer people property tax relief.” Del Mar clarified this wouldn’t mean redirecting funds for public education.

“We’re looking at how we fund schools, how we make sure to empower teachers to have the best educational outcomes that we can have here in Illinois, regardless of what your zip code is, regardless of what your parents do for a living or how much money they make,” added Del Mar.

Reflecting on Rockford

Each candidate provided their vision for boosting the Rockford region.

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For Mitchell, improvements continue with infrastructure funding, building on the state’s roughly $500 million investment in the area.

“The things that we have already worked on, through the capital plan that I helped lead as deputy governor, that the governor signed and is implementing, are already having benefits that the people of Rockford can see.”

The Democrat also pointed to the Chicago Rockford International Airport as an opportunity.

“Investing in that regional airport where we’ve already helped with a matching grant to get additional funds, that helps build out the economy,” said Mitchell. “There’s so much that’s happening there that it is really good for the economy and bringing more people back to Rockford.”

Del Mar shared his local priority as supporting unionization in the area.

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“Union families deserve to be able to have a livable wage, and that’s something that’s important to Darren and I,” said Del Mar. He mentioned pensions were another item that a Republican executive wouldn’t touch for the public and private sector unions.

“I know that area up there has strong union backbone,” described Del Mar. “We want to make sure they know that they’re not going to have a bigger supporter in the governor’s mansion than Darren and I.”

Election Day

When asked for thoughts on their opponent, Mitchell criticized the Bailey campaign as a “repacking” of his 2022 run.

“The only record that they have to run on is extremism,” he exclaimed.

The Republican candidate also reflected on records, pointing to Pritzker’s years in office.

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“Why are we underfunding education? Why are property taxes at all-time high? Why are businesses leaving?” asked Del Mar.

Voters can decide on who will lead Illinois November 3. Early voting starts September 24, with applications for voting by mail opening August 5.

Extended Interviews

Copyright 2026 WIFR. All rights reserved.



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Illinois man charged after Rochester sting catches phone scammer with $50K in cash

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Illinois man charged after Rochester sting catches phone scammer with K in cash


A man from Illinois is facing felony charges after police say he took part in a scheme that convinced a Rochester resident to hand over thousands of dollars in cash and nearly fell for a gold bar handoff.

Rochester phone scam

What we know:

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According to a criminal complaint filed in Olmsted County District Court, police say the victim was contacted by phone and told he was under investigation for a crime. The caller convinced him to deliver $30,000 in cash to a man he met in person on June 17, 2026. 

The victim was then pressured to arrange a second delivery — this time, 10 one-ounce gold bars — on June 23, 2026. Detectives worked with the victim to set up a controlled delivery using fake gold bars and a GPS tracker.

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Charges state that the plan was for the victim to meet whoever arrived to pick up the package, while officers watched nearby. Surveillance officers saw a white SUV with Illinois plates circling the parking lot at 2711 Commerce Drive NW in Rochester.

The complaint states a man, later identified as Kiranbhai Kanubhai Vasava, got out, met the victim, gave the password and took the package. Officers followed the car as it left the scene. Detectives stop suspects and recover cash 

Why you should care:

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Police stopped the SUV near Eyota and searched it, finding $50,000 in cash, several cell phones, bank checks with Vasava’s name, and packaging materials similar to those used for the fake gold bars. The package with the GPS tracker and fake gold was missing, but officers later found the GPS device torn apart on the side of the highway. 

The second man in the car, Hemendrasinh Pravinsinh Dabhi, told police he got a call from India about a package but claimed he knew nothing about it, saying, “he just drives.” Vasava also denied knowing what was happening. 

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Kiranbhai Vasava linked to Wisconsin case

The backstory:

The complaint states detectives linked Vasava to another similar case in Stevens Point, Wisconsin, where a bank customer was convinced to hand over $50,000 in cash to a driver in a white Honda SUV. Video from that incident showed Vasava receiving the package.

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Police say this type of swindle involves convincing victims they are under investigation and must pay money or hand over valuables to clear their name. Detectives say the investigation involved coordination between local police and law enforcement in Wisconsin.

The Source: Criminal charges filed in Olmsted County Court.

Crime and Public SafetyRochesterOlmsted County
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