As the Trump administration allows garnishing wages of borrowers in default, experts say student loan benefits are a business imperative.

Federal student loans aren’t considered in default until they are 270 days late. However, loans are considered delinquent on the first day following a missed due date. After 90 days of delinquency, your servicer can report your missed payments to the credit bureaus, which would have a negative impact on your credit score.

With the expiration of pandemic-era relief measures, borrowers are struggling to make payments and keep up their credit scores. Trump’s “Big Beautiful Bill” will make it even harder for future borrowers.

Federal legislation signed into law this month rewrites student loan and grant policy with the goal of frugality, with critics warning it may push students toward loans and programs with fewer protections.

The Trump administration has threatened, then revoked threats, to resume collections on federal student loans. A higher education expert, Mark Kantrowitz, told CNBC that if the administration proceeded with their initial plans, borrowers in default could see their Social Security benefits docked by as much as 15%.

A federal loan officially enters default when it’s 270 days past due. Defaulting has serious consequences, including credit damage, wage garnishment and losing federal student laon benefits.

The bill, if signed into law by President Donald Trump, would bring about major changes to the federal loan system.

The 'Big, Beautiful Bill,' which was recently signed into law, eliminates unemployment and economic hardship deferments, reducing the options student loan borrowers have to pause their payments.

Senate passes Trump's reconciliation bill with major student loan changes. Repayment plans, borrowing caps, and elimination of popular programs worry advocates.