HUNTSVILLE — Ashley Dreahn, a 40-year-old prison supervisor in Huntsville, Texas, entered default on her student loans in spring 2026. The default occurred after she believed the debt had been discharged during her 2022 bankruptcy filing.

Dreahn enrolled at Texas Woman’s University in 2004 as the first member of her family to attend college. She earned a degree in history with an emphasis on education and social studies from the institution.

After earning her initial degree, Dreahn worked as a teacher. She later took out additional student loans to earn two associate degrees from a public community college in Texas.

During her educational journey, Dreahn recalled moments of financial pressure from the institutions she attended. "There was one point where they were like, ‘If you don’t come up with the money, we’re dropping you from your classes,’" she said. Regarding the process of securing financing, she said, "And it was, ‘OK, what do I need to sign?’"

She said she relied on institutional guidance when navigating her debt. "You just kind of trust these advisers and trust these financial aid people that this is what you’re supposed to do," she said.

Her career path included an offer at a chemical refinery that was rescinded because she exceeded the weight limit for the company’s safety equipment. She currently works as a supervisor at a prison in Huntsville.

Dreahn filed for bankruptcy in 2022. Student loans are rarely discharged in bankruptcy, as borrowers must prove that the loans pose an "undue hardship" to have them discharged.

After filing for bankruptcy, her online credit report indicated that she had paid off 100% of her student loans. "I was so relieved, like, ‘OK, now I can start life over,’" she said. She planned to use the financial relief to build stability, noting, "'I can save some money.'"

The situation changed in spring 2026 when she received a default notice showing her debt was still owed. "I absolutely broke down," she said. She is now in default on her student loans. "I just feel like, where is that light at the end of the tunnel now that I thought I had?" she said.

Her experience reflects a broader trend in the United States. The number of borrowers with defaulted student loans in the U.S. increased by more than 4.2 million from April 2025 to March 2026. Approximately 9.5 million borrowers, or more than one in five, are in default on student loans as of March 2026.

The previous record for borrowers in default was 8 million in December 2019. There are currently 870,000 borrowers with student loans between 181 and 270 days late.

Student loan payments resumed in fall 2024 after a pandemic-era freeze and a one-year grace period. Borrowers enter default after missing student loan payments for nine months.

Data indicates disparities in repayment status by institution type. Thirty-three percent of borrowers at for-profit schools nationally were at least 90 days late on payments. The rate of borrowers at least 90 days late on payments at for-profit schools is more than twice the rate at public schools.

Jason Altmire is the president and CEO of Career Education Colleges and Universities. The organization has created a task force to reach out to students about the importance of loan repayment. "We take it seriously," he said.

The U.S. Education Department is dismantling the SAVE income-driven repayment plan. The department states that changes to the student loan system are intended to simplify a fragmented system.

The federal government can garnish wages and Social Security payments from borrowers in default. The Trump administration walked back plans to begin collections on defaulted student loans in January 2026. A Moody’s Analytics report stated that garnishments on defaulted student loans are likely to begin within the next year.

Alan Collinge is the founder of Student Loan Justice and the author of "The Student Loan Scam." He described the current climate among borrowers. "I am seeing despair and outrage and despondency and just a very wide mix of pretty extreme emotions, the likes of which I have not seen before," he said.